Separation of Authority in Corporation

The video explains the roles and responsibilities within a corporation. Shareholders elect directors and have authority over major decisions like amending bylaws and issuing shares. Directors make strategic decisions, such as approving corporate strategy and hiring executives. Managers handle daily operations, with officers overseeing routine business activities. Directors typically do not engage in daily affairs unless they also serve as officers.

What is one of the primary responsibilities of shareholders in a corporation?

• Electing directors to the board

• Managing daily operations

• Setting corporate budgets

• Hiring executives

Which of the following is a major decision that shareholders might approve?

• Hiring of managers

• Dissolution of the corporation

• Corporate strategy approval

• Daily business operations

What is a key responsibility of directors in a corporation?

• Carrying out daily business operations

• Electing shareholders

• Approving corporate strategy

• Issuing shares

Who is primarily responsible for the daily operations of a corporation?

• Managers or executives

• Directors

• Shareholders

• Board members

In what situation might directors be involved in daily business operations?

• When new shares are issued

• When they are also managers

• When bylaws are amended

• When shareholders request it