Consider the Following Statements

question 17

Multiple Choice

Consider the following statements:
(i) Staggering makes it easier for a minority of the shareholders to elect a director when there is cumulative voting.
(ii) Staggering makes takeover attempts less likely to be successful.

• A)(i) and (ii) are both correct.
• B)(i) and (ii) are both incorrect.
• C)(i) is incorrect and (ii) is correct.
• D)(i) is correct and (ii) is incorrect.
• E)None of the above.

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Definitions:

Accounting Changes

Adjustments made to the accounting methods, estimates, or reporting entities of a firm, which must be disclosed to stakeholders to ensure transparency.

Discretionary Accruals

Accounting adjustments made by management's judgment, often to smooth out earnings or manipulate financial statements.

Increase Income

A financial objective focused on enhancing the amount of earnings generated by an individual or entity.

Managerial Strategies

Approaches and plans implemented by management to achieve organizational goals and improve company performance.