What is one of the biggest differences between a sole proprietorship and a corporation? A) Sole...

What is one of the biggest differences between a sole proprietorship and a corporation?

A)	Sole proprietorships have limited liability.

B)	Corporations are the only profitable firms.

C)	Corporation shareholders elect the managers of the firm.

D)	Sole proprietorships offer stock.

Solutions

Expert Solution

The board of directors is elected by the shareholders of a corporation to oversee and govern the management and to make corporate decisions on their behalf. As a result, the board is directly responsible for protecting and managing shareholders' interests in the company.

The correct option is therefore

C) Corporation shareholders elect the managers of the firm.

Rahul Sunny answered 1 year ago

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