Which One of the Following Statements Is TRUE

question 38

Multiple Choice

Which one of the following statements is TRUE?

• A) if a company has a classified board, fewer board seats are filled each year.
• B) one tool of corporate governance is choosing a good investment banker.
• C) a classified board is one in which the board members serve anonymously.
• D) a classified board is one in which an announcement requesting applications for board members appears in the newspaper.
• E) in a classified board, it is easier for dissidents to gain representation since fewer seats are up for election each year.

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Definitions:

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated as the company's total liabilities divided by its total assets.

Real Estate Investment Trusts

Companies that own, operate, or finance income-generating real estate, offering investors a way to invest in real estate through the purchase of publicly traded shares.

Portfolio Turnover

This term refers to the frequency at which assets within a portfolio are bought and sold by the manager, indicating trading activity level and potential costs.

Tax Liability

The total amount of tax that an individual or corporation is legally obligated to pay to an authority as the result of the occurrence of a taxable event.