In a company, the authority to make major policy decisions normally belongs to the:
Correct answer: D. Board of directors
- A. External auditor
- B. Trade union committee
- C. Company registrar
- D. Board of directors
Explanation
The board of directors is responsible for directing the company and making major policy decisions on behalf of shareholders. The registrar records statutory information but does not manage the company.
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About Nature and Forms of Business Organisation
Business organisation combines people, capital, materials and entrepreneurship to produce goods or services and earn profit, while also meeting customer and social needs. Coverage includes sole proprietorships, partnerships, companies and cooperatives, with comparisons of ownership, liability, control, profit sharing, continuity and legal status.
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