Before Filing a Derivative Lawsuit,shareholders Must

question 25

Multiple Choice

Before filing a derivative lawsuit,shareholders must

• A)notify the board that the corporation has been wronged and ask the board to bring suit in the name of the corporation directly.
• B)notify the Secretary of State that the corporation has been wronged and ask the Attorney General to file the lawsuit on behalf of the corporation.
• C)hold a special meeting, and a majority of the shareholders must vote to file the lawsuit.
• D)place the lawsuit on the company's proxy statement, and the proposal must receive a majority vote.

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Definitions:

Financial Statement Presentation

The structured representation of the financial information, typically including the balance sheet, income statement, and cash flow statement, of an entity.

Return on Assets

This measures how efficiently a company's management is using its total assets to generate profits.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales or revenue.

Average Total Assets

This metric calculates the average value of all assets owned by a company over a specific period, usually used in financial analysis to gauge productivity.