Which of the Following Is NOT a Possible and Appropriate

question 3

Multiple Choice

Which of the following is NOT a possible and appropriate response by shareholders dissatisfied with existing firm management of a publicly traded firm?

• A) Shareholders could sell their shares of stock.
• B) Shareholders could remain quietly disgruntled.
• C) Shareholders, perhaps with the help of others, could attempt to initiate a takeover.
• D) All of these responses may be possible and appropriate.

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Definitions:

Note Payable

A written agreement where one party promises to pay another party a certain amount of money at a future date or on demand.

Adjusting Entry

An accounting journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate years.

Adjusting Entry

An accounting entry made into a ledger after the reporting period has ended, to record previously unrecorded revenues or expenses or to correct inaccurate entries.

Income Statement

An income statement is a financial document that shows a company’s revenues, expenses, and profits over a specific period, illustrating the profitability of the business.