| disputes management authority board unilaterally consultation
limited delegate
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The corporation can be very flexible in management arrangements. Day-to-day operating management can be given to one or more officers, while the 1________ of directors retains general policy control. Shareholders who are not directors have a very 2_________ voice in corporate decision making; however, they seldom risk liability by participating in management.
Limited partners, on the other hand, generally cannot participate in 3__________ at all without the danger of losing limited liability. General partners usually are free to take an active role in management, although they can 4_________ routine management decisions to one or more partners. Nevertheless, all general partners are likely to have apparent 5__________ to bind the partnership. Because partners seldom give up their right to participate in management, business decisions may be delayed by time-consuming 6__________, and deadlocks may occur.
The close corporation is no freer of serious problems than a partnership when owners cannot agree on management. Since it is more traditional in the corporate form to assign everyday management to a chief executive officer, conflicts and 7__________ may arise less often under that form. Of course, the sole proprietorship provides the greatest ease of management. There, the proprietor is free, within the limits of the law, to 8___________ determine the destiny of the organization.
