Future Business Leaders of America (FBLA) Business Law Practice Exam

Who is elected by shareholders to make broad policy decisions in a corporation?

1. Corporate officer

2. Ceo

3. Chief financial officer

4. Shareholder representative

The correct answer is: Corporate officer

The correct answer is that corporate officers are elected by shareholders to make broad policy decisions in a corporation. Shareholders, as the owners of the corporation, have the right to elect a board of directors. This board is responsible for overseeing the management of the corporation and making significant policy decisions that affect the company's direction, strategies, and overall governance. While the CEO and other officers hold important positions within a corporation, their roles typically involve the implementation of the policies set forth by the board of directors. The CEO, specifically, is responsible for the day-to-day operations and directly managing the company, but their authority is derived from the board, not from direct election by shareholders. The chief financial officer, likewise, focuses on the financial aspects of the company and operates under the directives of the board and the CEO. Shareholder representatives may suggest to shareholders or act on their behalf in some cases, but they do not have the authority to make broad policy decisions unless elected to the board. Thus, the role of corporate officers, particularly the board of directors, encompasses the responsibility for making higher-level strategic decisions that shape the corporation's future.