One of the Reasons Why Proxy Fights Are Rarely Successful

question 69

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:

OTC

Over-the-counter; referring to securities traded in some context other than on a formal exchange.

Proprietorship

A business entity owned and operated by a single individual, with no distinction between the business and the owner.

Personal Liability

The responsibility of individuals to repay debt or fulfill obligations from their own assets, distinct from corporate or shared liabilities.

Limited Liability

A legal structure where a company's owners are protected from personal responsibility for its debts or liabilities beyond their investment in the company.