During a Special Meeting of Shareholders at Which a Quorum

question 41

Multiple Choice

During a special meeting of shareholders at which a quorum is present, action may always be taken by the shareholders on:

• A) any matter affecting the welfare of the corporation.
• B) the removal of one or more of the directors.
• C) the determination of the price at which to sell the products manufactured by the corporation.
• D) the subject specified in the notice of the meeting.

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Definitions:

Shares Outstanding

The total number of a company’s shares that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Low Dividend Policy

A corporate strategy involving the paying out of a small portion of a company’s earnings in the form of dividends, while retaining the majority to reinvest in the business.

Tax Deferred

Financial arrangements where investment gains such as interest, dividends, or capital gains accumulate tax free until the investor takes constructive receipt of the gains.

Net Present Value

The difference between the current value of cash inflows and the current value of cash outflows over a period of time.