Who are the senior members of staff elected by shareholders to run the business on their behalf?

• A. External Stakeholders
• B. Directors
• C. Internal Stakeholders
• D. Managers

Answer: (B)

Directors are the senior people elected by shareholders to govern the company and run it on their behalf. They form the board, holding a fiduciary duty to protect shareholders’ interests, and they set the strategic direction, approve major policies and budgets, and appoint and oversee the CEO and other top executives. While managers handle daily operations, the board monitors performance and ensures accountability and compliance. External stakeholders are those outside the company, and internal stakeholders include employees and managers; directors are distinct because they’re chosen specifically by shareholders to represent their interests at the highest level of governance.