How does a corporation typically manage its affairs?

A corporation typically manages its affairs through a centralized board of directors or trustees, which is responsible for making significant decisions and overseeing the overall operations and policies of the organization. This structure allows for a systematic approach to governance, where elected directors represent the interests of shareholders and provide strategic direction for the corporation.

The board of directors is tasked with critical responsibilities such as appointing executive officers, approving budgets, and ensuring compliance with laws and regulations. This centralized model supports efficient decision-making and accountability, as the board can quickly respond to shifts in the business environment or the needs of stakeholders.

In contrast, the other options present less common or effective management structures within a corporation. Management through a network of cooperative members would typically be more aligned with cooperative organizations rather than traditional corporations. Consensus of shareholders implies a more democratic and decentralized approach to decision-making, which is not practical for the day-to-day management of a corporation. Likewise, incorporating direct input from all employees into management practices could lead to inefficiencies and lack of clarity in leadership, as corporations need a clear and authoritative decision-making body to navigate complex business challenges.