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Chapter 17: Q.18 (page 426)

How do the shareholders who own a company choose the actual company managers?

Short Answer

Expert verified

The managers are chosen by the shareholders who have voting rights.

Step by step solution

01

Step 1. Concept of shareholder

an individual who claims stock in a very enterprise is thought as an investor.

02

Step 2. Explanation

Shareholders own the share of company. Their ownership depends upon the percentage of shares of they own. Every shareholder has a voting right .they vote and choose the board of directors which in turn hire the top executives and mangers to run the company.

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