Question

Ownership concentration is determined by both:________ a. the number of outside directors and total percentage of shares they own. b. the number of stockholders and the parties they represent. c. the number of stockholders and total percentage of shares they own. d. the number of outside directors and the parties they represent.

Answer 1

Answer:

b.

Explanation:

Ownership concentration refers to the internal governance mechanism where the owners of the company/firm/business (shareholders) can control and thus influence the direction that the company takes in order to protect their own interests. Therefore the ownership concentration is determined by both the number of stockholders and the parties they represent.