Who selects a corporation's board of directors?

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Prepare for the WGU ACCT2350 Intro to Business Accounting Exam. Practice with multiple choice questions and detailed solutions to sharpen your accounting skills. Master your exam with confidence!

Multiple Choice

Who selects a corporation's board of directors?

Explanation:
In corporate governance, ownership gives the right to elect the board. Shareholders, who own the company through their stock, vote at annual or special meetings to choose the directors who will represent them. The board’s job is to set broad policy and oversee management, including hiring or firing the chief executive, while managers run the day-to-day operations. Employees don’t have the usual power to select directors, and public regulators oversee compliance rather than appoint the board. So, the people who select the board are the shareholders.

In corporate governance, ownership gives the right to elect the board. Shareholders, who own the company through their stock, vote at annual or special meetings to choose the directors who will represent them. The board’s job is to set broad policy and oversee management, including hiring or firing the chief executive, while managers run the day-to-day operations. Employees don’t have the usual power to select directors, and public regulators oversee compliance rather than appoint the board. So, the people who select the board are the shareholders.

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