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:

RUPA

The Revised Uniform Partnership Act is a set of laws intended to govern partnerships and their operations in the United States.

Statement of Partnership Authority

A document that delineates the extent of a partner's ability to make decisions and bind the partnership in contractual agreements.

Real Property

Land and anything permanently attached to it, such as buildings and structures.

Respondeat Superior

A legal doctrine holding an employer or principal legally responsible for the wrongful acts of an employee or agent, when such acts occur within the scope of employment or agency.