Which of the Following Statements Regarding Shareholder Roles in Corporate

question 45

Multiple Choice

Which of the following statements regarding shareholder roles in corporate governance is FALSE?

• A)Recently,shareholders have started organizing "no" votes.That is,when they are dissatisfied with a board,they simply refuse to vote to approve the slate of nominees for the board.
• B)One early study of proxy contests found that the announcement of a contest increased firm stock price by 8% on average,even if the challenge was eventually unsuccessful and the incumbents won reelection.
• C)Shareholders' only real role in governance is in electing the directors of the company.
• D)Perhaps the most extreme form of direct action that disgruntled shareholders can take is to hold a proxy contest and introduce a rival slate of directors for election to the board.

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Definitions:

Cash Account

A type of account in finance that records all cash transactions, including receipts and payments.

Cash Receipts

Records of all cash amounts received by a company, documenting sales, returns, and other transactions involving cash inflows.

Cash Payments

Monetary transactions where cash is used to settle the amount owed for purchases or expenses.

Note Payable

A written promise to pay a specified amount of money, usually with interest, by a certain date to the holder of the note.