The best management style is when employees are lead by example and not by command.
Who appoints the board of directors in a public stock company?A) AuditorsB) ShareholdersC) EmployeesD) CEOs
Answer:
The answer is B. Shareholders
Explanation:
The owners of the company (shareholders) appoint the board of directors for check and balance and to protect their interests. Appointing board of directors is one of the criteria of good corporate governance.
Because there is usually what we call agency problem whereby the agents(company's management) tends to go for their interest at the expense of the principal's(shareholders), board of directors are appointed for check and balance