A Staggered Board

question 53

Multiple Choice

A staggered board

• A) increases the chances of a hostile takeover.
• B) has only a portion of the board stand for election each year.
• C) makes it easier for shareholders to curb a CEO's power.
• D) is seen in less than 50% of U.S. boards.
• E) provides little continuity.

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Definitions:

Current Liability

A financial obligation a company is expected to settle within one fiscal year or its current operating cycle, whichever is longer.

Long-term Debt

Loans and financial obligations lasting more than one year that a company owes to external parties.

Contingent Liability

A potential liability that may become an actual liability in the future.

Warranty Expense

Costs associated with the obligation to repair or replace a product due to defects for a specified period.