In the Coen Brothers' Movie the Hudsucker Proxy the Board

question 72

Multiple Choice

In the Coen Brothers' movie The Hudsucker Proxy the board of directors picks someone to run the company who they believe will make poor decisions.If things turn out as they plan,

• A)the price of a share of stock in the Hudsucker corporation should decline as the demand for shares falls.
• B)the price of a share of stock in the Hudsucker corporation should rise as the demand for shares rises.
• C)the price of a share of stock in the Hudsucker corporation should decline as the supply of existing shares falls.
• D)the price of a share of stock in the Hudsucker corporation should rise as the supply of existing shares rises.

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Definitions:

Rights

Entitlements or privileges legally guaranteed to individuals or entities, underpinning their ability to perform or refrain from certain actions.

Negotiable Instrument

A signed document that promises payment to a specified person or assignee.

Unconditional Promise

A firm commitment or pledge not subject to any conditions or contingencies.

Transferee

An individual or entity that receives property, rights, or interests from another through a legal transfer process.