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QuizMultiple Choice

N/A — Exam

Question 1 • CMS 2026-2027 Economics and Personal Finance HONORS INITIAL CREDIT

Based on the chart, the primary responsibility of shareholders is to

Answer
A
make business decisions on the advice of a board of directors, who follow the expertise of leaders.
B
make business decisions on the advice of a board of directors, a president, and other leaders.
C
run the business by electing a board of directors, who then hire the company’s leaders.
D
run the business by electing a board of directors and hiring a president and other leaders.

Explanation

Shareholders’ main role is to elect the board of directors. The board oversees the company and hires its leaders, who manage daily operations. So shareholders do not directly run the business or hire the president and other leaders.

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