Which of the following best describes the distinction between directors and shareholders? A) Both directors and shareholders manage daily operations. B) Directors handle daily mana... Which of the following best describes the distinction between directors and shareholders? A) Both directors and shareholders manage daily operations. B) Directors handle daily management, while shareholders primarily invest and make limited decisions. C) Directors are investors, while shareholders manage operations. D) Shareholders are paid salaries, while directors receive dividends.
Understand the Problem
The question is asking for the correct distinction between directors and shareholders in a corporate structure, focusing on their roles and responsibilities.
Answer
B) Directors handle daily management, while shareholders primarily invest and make limited decisions.
The final answer is B.
Answer for screen readers
The final answer is B.
More Information
In a corporation, directors are responsible for the day-to-day management and decision-making tasks, whereas shareholders are the owners of the company who primarily invest and make significant decisions like voting for directors or approving large transactions.
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