Question

In a corporation, what group has the ultimate responsibility for protecting and managing the stockholders’ interests?

Short answer

The board of directors has the responsibility of protecting and managing the stockholder’s interest.

Step-by-step solution

Meaning of the board of directors

The board of directors is a group elected by shareholders to manage the company. The board represents the shareholders and oversees the operations of the corporation.

The responsibility of the board

The board of directors has the responsibility to ensure that the interests of the shareholders are protected. They are also responsible for governing the corporation and setting long-term organizational goals.