What is the group of people elected to oversee the firm's activities and ensure management acts in the shareholders' best interests?

• A. Board of Directors
• B. Audit Committee
• C. Management Council
• D. Executive Committee

Answer: (A)

In corporate governance, the group elected by shareholders to supervise management and ensure actions reflect shareholders’ interests is the Board of Directors. They hold the ultimate responsibility for guiding strategy, hiring and firing the CEO, approving major policies, and monitoring overall performance. This oversight helps align management’s decisions with what shareholders expect and protect their interests.

Committees like the Audit Committee exist to handle specialized duties—such as financial reporting and internal controls—but they operate under the board’s authority and don’t replace the board’s broad oversight role. An executive committee is typically a smaller subset empowered to act on certain matters between full board meetings, yet it doesn’t carry the full fiduciary duty or governance responsibilities of the board itself. A management council isn’t the standard governing body in most firms.

So, the group that oversees the firm’s activities and ensures management acts in shareholders’ best interests is the Board of Directors.