The Terms ________ and ________ Mean the Same Thing

question 94

Multiple Choice

The terms ________ and ________ mean the same thing.

• A)nondiversifiable risk; unsystematic risk
• B)diversifiable risk; systematic risk
• C)diversifiable risk; unsystematic risk
• D)total risk; unique risk

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Definitions:

Cumulative Voting

Cumulative voting is a voting system that allows shareholders to allocate their votes to one or several candidates in a way that can increase minority shareholder representation on the board of directors.

Shareholder

An individual or organization that owns shares in a corporation, thus holding a portion of the company's stock.

Board Of Directors

A group of individuals elected to represent shareholders and make decisions on major company issues, such as corporate policy, hiring executives, and overseeing management.

Market Rate Of Return

The average rate of return anticipated from an investment relative to the market as a whole.