Which One of the Following Statements Is Correct

question 2

Multiple Choice

Which one of the following statements is correct?

• A)Proxy contests in the USA tend to result in an increase in the targeted firm's stock price.
• B)Proxy contests in the Europe normally cause a drop in the stock price of the targeted firm.
• C)While their outcome is not binding for the management, proxy contests in the USA are more likely to earn shareholder approval than in Europe.
• D)All of the above.

---

Definitions:

Credit Terms

The conditions under which credit is extended by a lender to a borrower, including repayment timing, interest rate, and other stipulations.

Carrying Cost

The total cost of holding inventory, including storage, insurance, and taxes.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Cost

Costs that vary directly with the level of production or sales volume.