Assessment of Skills and Knowledge(ASK) in Fundamental Business Concepts Practice Test

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Get ready for the ASK in Fundamental Business Concepts Test. Master concepts with targeted questions, flashcards, and in-depth explanations. Ace your exam with confidence!

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Whom does the CEO of a public corporation report to?

Shareholders
Board of Directors
Executive Team
Employees

The correct answer is: Board of Directors

The Chief Executive Officer (CEO) of a public corporation reports to the Board of Directors. The Board of Directors is responsible for overseeing the management of the company and ensuring that it acts in the best interest of the shareholders. The CEO, as the highest-ranking executive, is tasked with implementing the board’s strategies and policies, managing company operations, and making day-to-day decisions. This relationship establishes a direct line of accountability where the CEO must keep the board informed and align the company's operations with the strategic goals set by the board. Although shareholders have a vested interest in the company’s performance and elect the board members, the CEO does not report directly to the shareholders. The executive team and employees, while important stakeholders in the organization, do not have the same governance oversight responsibilities as the Board of Directors.