Public limited liability companies are democratic in nature because
A. shareholders elect the board of directors.
B. they are run by elected public officers.
C. government appointees are members of the board.
D. electoral principles are adopted in the day-to-day management.
QandA LiberiaTeacher
Public limited liability companies are democratic in nature because A. shareholders elect the board of directors. B. they are run by elected public officers. C. government appointees are members of the board. D. electoral principles are adopted in the day-to-day management.
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A is the correct answer because in such companies those who runs the day to day affairs of the company (the board of directors) are elected by the shareholders and as such they cannot dictate the decisions of the company without the approval of the shareholders.