The Following Are Methods Available to Change the Management of a Firm

question 2

Multiple Choice

The following are methods available to change the management of a firm:
I.a successful proxy contest in which a group of shareholders vote in a new board of directors who then pick a new management team;
II.a takeover of one firm by another firm;
III.a leveraged buyout of the firm by a private group of investors

• A)I only
• B)II and III only
• C)I, II, and III
• D)I and III only

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Definitions:

Accounting Break-Even

The point at which total revenues equal total expenses, and the company generates neither profit nor loss from operations.

Depreciation Expense

The portion of the cost of a fixed asset that is considered as an expense due to its use, wear and tear, or obsolescence over its useful life.

Tax Rate

The metric used to figure out the tax obligation of individuals and corporate entities.

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.