Stockholders are from the managers and employees of the firm because they are not actively involved in the operations of the firm. True or false?.

Question

06-09-2022
Business

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Stockholders are from the managers and employees of the firm because they are not actively involved in the operations of the firm. True or false?.

Sagot :

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mdrdncz mdrdncz · Answer 1 · 2022-09-10T10:13:45-04:00

This is utterly FALSE! Stockholders are NOT the managers or the employees of the firm. But it is true that stockholders are not actively involved in the operations of the firm.

Stockholders are SEPARATE from the managers and employees of the firm due to the fact that they are not intimately participating in the firm's ops.

All that matters to stockholders is the profit the company will give them. As a result, managers and employees work for the company and are the reason why there is profit, not stockholders!

Well, there's an exception. If the stockholder is also the owner or elected as board of director, then they will be involved in the operations of the firm.

Know what happens when the stockholders elect a group of individuals to oversee the company's operation and to represent their interests: https://brainly.com/question/14702417

#SPJ4

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