A Firm Should Be Transparent, Meaning

question 41

Multiple Choice

A firm should be transparent, meaning

• A)the windows at headquarters should be cleaned regularly
• B)if executives lie during a stockholder meeting, people should be able to see right through them
• C)someone should be able to look at the books and the balance sheet and tell exactly what's going on
• D)None of the answers is correct
• E)All of the answers are correct

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Definitions:

Capital Gains Return

The profit realized from the sale of securities or investments which have increased in value over the time they were held.

Super-Normal Voting Rights

Voting rights that are greater than one vote per share, typically granted to certain class of shares to retain control in a company.

Preemptive Right

The right of existing shareholders to purchase additional shares in a company before the company offers them to the public, to maintain their proportionate ownership in the company.

After-Tax Yield

The profitability of an investment after all taxes have been deducted, providing a true picture of the investment's return.