Identify the Correct Statement About Shareholder Influence

question 20

Multiple Choice

Identify the correct statement about shareholder influence.

• A) Shareholders often exercise their voting power to replace management.
• B) In corporate elections,stockholders cannot vote for another candidate.
• C) If stockholders submit nominees to board nominating committees,the directors have to accept them.
• D) Most shareholders do not follow management's voting recommendations.

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Definitions:

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company.

Direct Method

A cash flow statement preparation method that itemizes actual cash receipts and payments.

Operating Expenses

Costs associated with the day-to-day functions of a business, excluding costs of production or manufacturing.

Prepaid Expenses

Payments made in advance for goods or services, which are recorded as assets until they are actually used.