What is the role of shareholders in ABC?

• A. Daily operational management
• B. Set regulatory compliance
• C. Provide capital and influence major decisions through voting rights
• D. Direct production scheduling

Answer: (C)

Shareholders provide capital and influence major decisions through voting rights. They own a stake in the company and use their votes to shape big strategic choices—like appointing directors, approving mergers or changes in capital structure, and deciding on dividends or major policy shifts. This ownership and voting power gives them influence at the strategic level, while day-to-day operations and production scheduling are handled by the company’s managers and executives. Similarly, regulatory compliance is overseen by management and the board to ensure the company meets laws and rules, not by shareholders directly.