Question

Which of the following statements is true of the corporate form of business?A. It is easy for stockholders to lodge an effective protest against management. B. The board of directors sets policy for the corporation and appoints the officers. C. Changes in the ownership of stock has a negative effect on the continuity of the corporation. D. Any stockholder may commit the corporation to a contract.

Answer 1

B. The board of directors sets policy for the corporation and appoints the officers.

Step-by-step explanation:

Because the board is the entity which takes the decisions, the stockholders cannot commit the corporation to a contract.

Also, the changes in the ownership of stock do not have a negative effect on the continuity of the corporation. As the main goal of the stock is to be more easy way out than partnership.

The board of directors supervises the activities of the corportation and appoint the corporate officers. In general, the officers are the president, vice-president, secretary and treasurer.