Which of the Following Is an Important Issue Raised by the Separation

question 48

Multiple Choice

Which of the following is an important issue raised by the separation of ownership and control in a corporation?

• A)The same person may be a shareholder, as well as a director and an officer.
• B)Directors and officers need to be shareholders as well.
• C)Shareholders must ensure that management act in the best interests of the shareholders who own the corporation rather than management who controls the management of the corporation.
• D)Can a shareholder be a senior manager in the corporation?
• E)What happens when a shareholder dies?

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Definitions:

Tchebysheff's Theorem

A mathematical formula that determines the minimum proportion of values that lie within a specified number of standard deviations from the mean, for any distribution.

Mound-Shaped

Mound-shaped describes a symmetrical, bell-shaped distribution of data points, indicative of a normal distribution.

Mode

The value that appears most frequently in a data set, a measure of central tendency.

Proportion of Weights

The ratio of an individual weight to the total weight of all items combined, often used in statistical calculations to determine relative importance.