A Situation Where Every Director Serves a Three-Year Term and the Terms

question 43

Multiple Choice

A situation where every director serves a three-year term and the terms are staggered so that only one-third of the directors are up for election each year is called a:

• A)white knight.
• B)classified board.
• C)poison pill.
• D)golden parachute.

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Definitions:

Expected Return

The weighted average of all possible returns from an investment, considering the probabilities of each outcome.

Equal Proportion

A division or allocation in the same or identical fractions, percentages, or portions.

Market Risk

The risk of losses in investments due to factors that affect the overall performance of the financial markets.

Coefficient of Variation

A statistical measure of the dispersion of data points in a data series around the mean, indicating the level of volatility.