Question

. A company is a democratic institution wherein the Board of Directors are representatives of the shareholders who are the owners. Owners have minimal influence in running the business. Shareholders are spread all over the country and a very small percentage attend the general meetings. The Board of Directors enjoy freedom in exercising their power, and sometimes they go against the interests of the shareholders. Dissatisfied shareholders have no option but to sell their shares and exit the company. This is the example of: *

a. Oligarhic management

b. Monoply Management

c. Openness Management

d. Joint Management

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Answer 1

Answer:

b.monoply management is the right option

Answer 2

It is an example of a. Oligarchic management

• This type of management reflects the effective control of the management of a firm in the hands of only a few people.
• Because decision-making is concentrated in the hands of a few persons, there is a risk of possible abuse of superior power.
• The principal shareholders, who are the precise proprietors, have little to say in proper management. Direct control of the firm can be exercised by a small group of shareholders who also manage the company's activities.
• As a result, it does not advance the considerable interests of shareholders as a coherent whole.