Ultimate control of a company is granted to which of the individuals? Select one

Question

Ultimate control of a company is granted to which of the individuals?

Select one:

a. Chairman of the board

b. Board of directors

c. Chief executive officer

d. Chief operating officer

e. Shareholders

Which of the following individuals is considered a stakeholder of a company?
I. Employee
II. Long-term creditor
III. Government
IV. Common stockholder

Select one:

a. I only

b. IV only

c. I and III only

d. II and IV only

e. II, III, and IV only

The definition of net working capital is:

Select one:

a. Total liabilities minus shareholders’ equity

b. Current liabilities minus shareholders’ equity

c. Fixed assets minus long-term liabilities

d. Total assets minus total liabilities

e. Current assets minus current liabilities

Explanation / Answer

1. Option e is correct,i.e., Shareholders have the ultimate control of a company; whereas board of directors are appointed by the shareholders and chairman of the board is then selected by the board members and ceo & coo are part of the management.

2. option c is correct,i.e., employee and government

whereas, all creditors and shareholders are stakeholders not only long term creditor and common shareholder

3. Option e is correct,i.e., Working Capital = Current Assets minus Current Liabilities;

whereas, total assets - total liabilities = shareholders' equity and other options doesn't have a specific definition.

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