Which of the Following Describes the First Step in a Policy

question 19

Multiple Choice

Which of the following describes the first step in a policy of disregarding the corporate governance model?

• A)Merge the roles of chief executive officer and chairman of the board into one individual.
• B)Separate the roles of chief executive officer and chairman of the board into different individuals.
• C)Hire outside individuals to sit on the board of directors.
• D)Assign the senior management team of the firm to serve on the board of directors.

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Definitions:

Ex-Rights Date

The first day a stock trades without the right to receive a specific dividend or distribution announced by the company.

Stock Trades

The act of buying, selling, or exchanging shares of stock in the financial markets.

Holder-of-Record Date

The date set by a corporation by which an individual must be registered as a shareholder to be eligible to receive dividends or distributions.

Stock Rights

Entitlements issued to existing shareholders, giving them the privilege to buy more shares of the corporation at a future date at a predetermined price.