In Which of the Following Ways Can the Management Teams

question 98

Multiple Choice

In which of the following ways can the management teams of many corporations influence the board of directors?

• A) By merging with another firm
• B) Through appointment of shareholders to replace current board members
• C) Through management's nomination of board candidates
• D) By declaring a liquidating cash dividend

Calculate and interpret return on total assets, return on ordinary shareholders' equity, basic earnings per share, price earnings ratio, and dividend yield.

Understand the purpose and components of general-purpose financial statements.

Recognize the importance and methods of analyzing a company's performance and financial condition over time.

Understand the significance of financial ratios in evaluating a company's performance.

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Definitions:

Economies of Scale

Economies of scale occur when a company reduces costs per unit due to an increase in production, typically achieved through operational efficiency and larger volume production.

Constant Returns to Scale

A situation in production where increasing all inputs by a certain factor results in output increasing by the same factor, indicating proportionate scalability.

AP

Advance Placement; a program in the United States and Canada offering college-level curriculum and examinations to high school students.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.