One of the Reasons Why Proxy Fights Are Often Unsuccessful

question 97

Multiple Choice

One of the reasons why proxy fights are often unsuccessful is that:

• A) management is always viewed as performing its job well.
• B) management can use corporate resources to defend against the fight.
• C) mergers are a cheaper form of changing management.
• D) shareholders are unconcerned with corporate management.

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Definitions:

Net Income

The final financial gain of a business after removing all expenses, taxes, and costs from the gross income.

Financing Activities

Transactions and events whereby resources are obtained from, or repaid to, owners (equity financing) and creditors (debt financing).

Equity Accounts

Accounts that represent the owner's claim or interest in the assets of a business, reflected in the equity section of the balance sheet.

Operating Activities

The day-to-day actions that are involved in running a business, which are reflected in the cash flows from operating activities section of the cash flow statement.