Which One of the Following Statements Is TRUE

question 5

Multiple Choice

Which one of the following statements is TRUE?

• A) A shareholder-friendly charter will make it easier for a company to be acquired.
• B) A company whose board members are elected in staggered terms is said to be an interlocking board of directors.
• C) A shareholder-friendly charter will make it easier for shareholders to meet with the CEO if they have concerns.
• D) A targeted share repurchase can be used to encourage a hostile takeover.
• E) An example of an agency cost is when the board of directors pays a dividend to shareholders.

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Definitions:

Money Income

The total earnings received by an individual or household, including wages, salaries, and other income forms, usually before taxes.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given income and prices.

Good X

generally refers to an unspecified product or commodity in economic models or discussions.

Budget Line

Represents the combination of goods and services that a consumer can purchase with a given budget at set prices.