Shareholders Normally Have the Right to Do All but Which

question 95

Multiple Choice

Shareholders normally have the right to do all but which one of the following?

• A) Elect the directors.
• B) Elect the officers.
• C) Approve the sale of a major division.
• D) Meet at least once a year.

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Definitions:

Outstanding Shares

The total number of shares of a corporation that are currently owned by all its shareholders, including shares held by institutional investors and restricted shares.

Straight-Line Method

A method of calculating depreciation of an asset by evenly distributing its cost over its useful life.

Shareholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing the ownership interest of shareholders.

Retained Earnings

The portion of a company's profits not distributed as dividends but reinvested in the business or kept as a reserve.