One of the Reasons Why Proxy Fights Are Rarely Successful

question 41

Multiple Choice

One of the reasons why proxy fights are rarely successful is that:

• A)management is always viewed as performing their jobs well.
• B)management can use corporate resources to defend against the fight.
• C)mergers are a cheaper form of changing management.
• D)shareholders are unconcerned with corporate management.

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Definitions:

Noncash Assets

Assets that cannot be easily converted into cash, such as real estate, equipment, and intellectual property.

Liquidated

The process of converting assets into cash or paying off liabilities in the process of closing or restructuring a business.

Capital Balances

The amount of money in a company's accounts that represents the capital contributed by the owners or shareholders.

Capital Interest

The stake that a particular investor holds in the equity of a firm, often represented by the share of the company's capital owned by the investor.