A Proxy Is

question 44

Multiple Choice

A proxy is

• A)A legal document that gives an agent of a shareholder the power to exercise the voting rights of that shareholder's shares
• B)A contractual commitment by an investor to purchase unissued shares and become a shareholder
• C)An amount of assets defined by law that shareholders must invest and leave invested in a corporation
• D)The right of common shareholders to protect their proportionate interests in a corporation by having the first opportunity to purchase additional shares of common shares issued by the corporation
• E)An arbitrary value a corporation places on each of the corporation's shares

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Definitions:

Merchandising Company

A business that purchases goods and sells them at a higher price without changing their form.

Manufacturing Company

A type of business that produces finished goods from raw materials through the use of labor and machinery.

Cost of Goods Sold

Cost of Goods Sold (COGS) represents the direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor used to create the product.

Cost of Goods Manufactured

The total cost associated with producing goods, including materials, labor, and overhead, within a certain period.