Staggered Elections

question 24

Multiple Choice

Staggered elections

• A)allow a portion of the board members to be elected on a permanent basis.
• B)increase the difficulties incurred when trying to replace the board of directors.
• C)are set forth in supermajority amendments.
• D)can be altered on a one-time basis to open all seats on the board to a simultaneous vote if shareholders approve a standstill agreement.
• E)increase the probability that a firm will be acquired by a stronger competitor.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from total revenue.

Income Distribution

The allocation of earned income or revenue to various stakeholders, such as dividends to shareholders or wages to employees.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset since it was put into use, representing how much of its value has been used up.

Allowance

A provision in accounting for a reduction in the value of receivables or inventories, often related to potential bad debts or damaged goods.