The responsibility for managing day-to-day operations and carrying out corporate policies belongs to the ______. Select...

The responsibility for managing day-to-day operations and carrying out corporate policies belongs to the ______.

Select one:

a. chief executive officer

b. stockholders

c. creditors

d. board of directors

Expert Solution

lets go by the method of eliminations:

Option (B): Now why this can't be the answer?, first of all stock holders are the perosnal that hold the stack in the compan's assets they do this by investing through equity, series funding. But one thing to note is that they hold their interest because they have principle interest their mind which is to make profit of their investment. They genrally doen't dictate or govern the operation of how a company operate. So no they can't take part in the day to day operation and working out corporate policies.

Option (C): Now these are, creditors, just the personals that had provided the financial backing with some certain covenants that to pay back their money with interest after agreed upon time. They also have no touch tooprations and strategic decisions that firm makes.

Option (D): Board of Directors, now they can be divided into the two groups - 1. Independent Directors and 2. Non-Independent Directors. Independent directors are mendotories as they represent the stockholder's trust into the company as they provide the non-personal interest into the decisions that the firm make thus eliminating the agency issue. non independent directors are also ina way selected by the stockholders while they involve in the certain operation but the don't have that much of involvement into the day to day operations.

Answere: option (A): CEO does take part in the general day to day operation of the companies and the policy making process. CEO is the one personal that becomes the middle person between the board and the employees of the firm. Their responsibility have making major corporate decisions, managing the overall operations and resources of a company.

jeff jeffy answered 2 years ago

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