Shareholder Proposals on the Company Proxy Statement

question 24

Multiple Choice

Shareholder proposals on the company proxy statement:

• A) must be stated in the form of a request or recommendation according to SEC rules.
• B) may only be implemented by the company if they receive support from at least a simple majority of the shareholders.
• C) are, in about half of the cases, withdrawn before a vote because the company decides to implement the proposal.
• D) may address only corporate-governance issues, such as cumulative voting or executive compensation, but may not address the shareholder's political agenda, such as saving the environment.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing ownership interest in the company.

Liabilities

Economic responsibilities or liabilities a corporation must repay to creditors, involving the transfer of economic advantages over time.

Assets

Economic resources owned or controlled by a business, expected to bring future benefits, such as cash, inventory, and equipment.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, including assets, liabilities, and shareholders' equity.