Which of the following is true of the management structure of
corporations in the United States?
A. Members of management who are inside directors serve on the
board of directors Members of management who are inside directors
serve on the board of directors.
B. Large corporations are legally owned by shareholders who do
usually not directly manage the firm.
C. Large corporations are legally owned by a board of directors
that directly manages a board of directors that directly manages
the firm .
D. The chief executive officer runs the day-to-day operations
of the corporation but does not sit on the board of directors.
E. Both a and b.
Answer
E. both a and b
Members of management who are inside directors serve on the
board of directors Members of management who are inside directors
serve on the board of directors.
Large corporations are legally owned by shareholders who do
usually not directly manage the firm.
