Common Shareholders Can Exert Control of the Management of the Firm

question 63

Multiple Choice

Common shareholders can exert control of the management of the firm by:

• A)requiring the firm to unionize.
• B)directly replacing management with themselves.
• C)buying shares in an initial public offering (IPO) at a discounted price.
• D)electing board members who can replace the management.
• E)buying shares in a second firm at a substantially reduced price.