public limited liability companies are democratic in nature because?
ECONOMICS
WAEC 2018
public limited liability companies are democratic in nature because?
- A. government appointees are members of the board
- B. they are run by elected public officers
- C. electoral principles are adopted in the day-to-day management
- D. shareholders elect the board of directors
Correct Answer: D. shareholders elect the board of directors
Explanation
The directors could not dictate the decisions in the company as the rights in decision making process also vest in the hands of shareholders. Thus democracy is maintained well.
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