Which of the Following Statements Describing How Owners and Shareholders

question 60

Multiple Choice

Which of the following statements describing how owners and shareholders relate to the organization is true?

• A) Companies with better HR practices have greater increases in market value/employee.
• B) An investor's judgment about the value of a company's intangible assets is based on such things as reputation rankings.
• C) Most owners and shareholders invest their money in companies for financial reasons.
• D) Intangibles such as how employees feel about their employer can be used by shareholders to predict financial performance.
• E) All of the above statements about how owners and shareholders relate to the organization are true.

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Definitions:

Court Order

A formal instruction or command issued by a court, requiring a person or entity to do or refrain from doing something.

Stakeholders

Groups, other than the company’s shareholders, that are affected by corporate decisions. Stakeholders include employees, customers, creditors, suppliers, and the community in which the corporation operates.

Tender Offer

A public offer made by a person, company, or entity to purchase a substantial portion of another company's shares or bonds.

Voting Shares

Stocks that grant the holder the right to vote on corporate matters at shareholders' meetings.