Understanding Corporate Structures Quiz

What is the primary goal of corporations?

• To provide free services

• To make a profit

• To operate like non-profits

• To avoid shareholder investments

Who provides capital for corporations to grow?

• The government only

• Investors and shareholders

• Employees of the corporation

• Competitors in the market

Which group is responsible for the day-to-day operations of a corporation?

• Board of Directors

• Management

• Shareholders

• Government officials

What is one of the responsibilities of the Board of Directors?

• Managing corporate risks

• Overseeing strategy and performance

• Making daily operational decisions

• Approving employee salaries

According to the video, what do shareholders commonly refer to themselves as?

• Managers

• Employees

• Owners

• Investors only

Which of the following is NOT mentioned as a responsibility of management?

• Running day-to-day operations

• Identifying corporate risks

• Electing directors

• Managing financial resources

What do shareholders have the power to approve?

• Employee hiring

• Mergers and acquisitions

• Daily operations

• Product design

Corporations are governed primarily by which of the following?

• Federal laws only

• State law and corporate bylaws

• International regulations

• Shareholder votes only

Person that reports to the board of directors is known as the ___

• CEO

• Stockholder

• Founder

• COO

• CFO

What is the name of a person who owns part of a corporation?

• Stakeholder
• Shareholder
• Chairman