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Question
Who controls the company?
Options
Debentures-holder
Employees
Shareholders
None of these
MCQ
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Solution
Shareholders
Explanation:
- As a company’s owners, shareholders have the final say over how it is run.
- They choose the Board of Directors, which controls the company’s operations and makes important decisions.
- In significant decisions such as the nomination of directors, mergers, acquisitions, and changes to the articles of association, shareholders have the ability to vote.
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Chapter 18: Sources of Business Finance - EXERCISES [Page 268]
