Maureen,a Shareholder of Metra,Inc

question 7

Multiple Choice

Maureen,a shareholder of Metra,Inc. ,is unhappy with how the corporation is being managed.Maureen wants the company to sell off its unproductive divisions.Which statement is correct?

• A)If Maureen owns at least 1 percent or $2,000 of Metra's stock,she can require the company to include her proposal in its proxy statement.
• B)If Maureen has a proper purpose,she can require the company to include her proposal in its proxy statement.
• C)If Maureen can show cause,she can require the company to automatically sell off its unproductive divisions.
• D)Maureen cannot require that the company put her proposal to sell off unproductive divisions on its proxy statement.

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Definitions:

Elastic

describes a condition in which the quantity demanded or supplied of a good or service is highly responsive to changes in its price.

Corporate Profits Tax

A levy imposed on the income or profit earned by corporations or analogous legal entities.

Partnerships

A legal form of business operation between two or more individuals who share management and profits.

Proprietorships

Businesses owned and operated by a single individual, with no legal distinction between the owner and the business entity.