Dodge VFord Stands for the Legal Principle That ______

question 7

Multiple Choice

Dodge v.Ford stands for the legal principle that ______.

• A)managers and directors have a legal duty to put shareholders' interests above all others
• B)managers, not shareholders, have the legal authority to determine workers' wages
• C)the interests of multiple stakeholders must be considered in business practices
• D)corporations have a legal duty to act in socially responsible ways

---

Definitions:

Required Rate

A rephrased definition: The minimum return rate required by investors to consider investing in a particular asset or project.

Coupon Interest Rate

Stated rate of interest on a bond, defined as the coupon payment divided by the par value.

Market Value

Market value is the current price at which an asset or company can be bought or sold in the marketplace, reflecting the value the market places on it.

Call Provision

Gives the issuing corporation the right to call the bonds for redemption. The call provision generally states that if the bonds are called, the company must pay the bondholders an amount greater than the par value, a call premium. Most bonds contain a call provision.