Question

Who manages a corporation?

Answer 1

One of the key differences between franchising and chain stores is the amount of risk involved. When a company chooses to expand with chain stores, it assumes all of the risk on its own. It funds the entire expansion project. By comparison, when a company franchises, it passes some of the risk onto other investors. Franchising represents less risk for the parent company, but it shifts the risk to the franchisee.

Answer 2

The correct answer is: "the Board of Directors".

The Board of Directors constitutes the upper strata in the organization chart of a corporation. Managers and owners are differenced in corporations and both groups usually have certain separate interests.

A Board of Directors is a group of managers who jointly supervise the activities of a corporation, seeking for maximizing its profits and for other objectives included in the organizations' own constitution or values.