Which of the Following Statements About Shareholder Proposals Is True

question 59

Multiple Choice

Which of the following statements about shareholder proposals is true?

• A)Only shareholders who own at least 10% of a firm's shares can submit a shareholder proposal.
• B)A shareholder proposal involves a large shareholder who solicits the right to vote the shares of other shareholders of the corporation for the purpose of ousting the current
• Board of directors.
• C)Even if a shareholder proposal is passed by a majority vote of the shareholders, management may still legally ignore it.
• D)Both A and B are true statements.

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Definitions:

Minimizing Law

The principle suggesting that organisms will adapt their behaviors in order to minimize negative consequences or punishments.

Contrast Law

A principle in psychology that states the perceived intensity of a stimulus can change relative to the intensity of a preceding or surrounding stimulus.

Mowrer's Two-Factor Theory

A theory proposing that avoidance learning involves both classical conditioning of fear and operant conditioning of the avoidance response.

Avoidance Conditioning

A learning process in operant conditioning wherein an individual learns a behavior to avoid an undesired stimulus or outcome.