Proxy Fights Generally Occur When a Group Is Trying To

question 24

Multiple Choice

Proxy fights generally occur when a group is trying to:

• A) rewrite the corporate charter.
• B) bring about economies of scale.
• C) replace the current board and management team.
• D) pursue a public tender offer.

---

Definitions:

Equity

Ownership interest in a company, represented by shares that entitle holders to a share of the company's profits.

Financial Leverage

The use of borrowed money to multiply financial performance in terms of ROE and EPS.

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly a right to vote at shareholders' meetings.

Capital Employed

The total amount of capital used for the acquisition of profits by a firm or project, including assets and working capital.