If You Own 1,000 Shares of Stock and You Can

question 59

Multiple Choice

If you own 1,000 shares of stock and you can cast 5,000 votes for a particular director, then the stock features

• A)cumulative voting.
• B)straight voting.
• C)majority voting.
• D)proxy voting.

Understand the role and types of heuristics in simplifying decision making.

Recognize methods to mitigate the escalation of commitment.

Understand the limitations of human decision-making in various environments due to cognitive and informational constraints.

Identify and differentiate between the key theories and models of decision-making and their applications.

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Definitions:

Percentage of Sales Approach

A forecasting method that estimates future financial outcomes based on a percentage relationship between sales growth and other financial accounts.

Financial Planning

The process of setting objectives, assessing assets and resources, estimating future financial needs, and making plans to achieve monetary goals.

Pro Forma Statement

A financial report created by making assumptions about events and transactions that have not yet taken place.

Financing Policies

Guidelines or principles that a company uses to decide how to finance its activities, including debt and equity financing choices.