7. How can the following statement be best explained: "Shareholders control the & The top governing body of a corporation is known as the Corporation Basic Considerations 541 Ordinary shares carry all the following rights except the right to creceive part of the profit before other classes of shares b. receive information about the corporation. d. attend the annual shareholders' meeting All shareholders vote on all the major issues and problems that a corporation faces on a month Shareholders are intricately involved in the daily operations of a corporation Shareholders elect the board of directors, and this board is responsible for apporting Corporat officers who manage the daily business of the corporation, dShareholders vote for the members of the board of directors and this board makes all the daily Shareholders usually call corporation management and tell executives better ways to in the in profits 6 share a. can activities of a corporation"? basis. b. C 1 1 decisions for the corporation ip e organization. a. incorporators. b. shareholders. c. management. d. officers. e. board of directors. k 1 9. Corporate officers are a. elected by shareholders. b. appointed by the board of directors. C. appointed by management. d. elected by incorporators. 10. Which of the following is not a disadvantage of the corporate form of ownership? a.. Difficulty of formation b. Limited liability C. Expense of incorporation and selling stock d. Lack of secrecy 1 11. The order of difficulty and expense, from most to least, when forming a business organization is as follows: a. corporation, sole proprietorship, partnership. b. corporation, partnership, sole proprietorship. C. partnership, corporation, sole proprietorship. d. partnership, sole proprietorship, partnership. ntorshin partnership, corporation