Which One of the Following Statements Is TRUE

question 37

Multiple Choice

Which one of the following statements is TRUE?

• A) it is harder for dissidents to gain board seats if a company's board is classified.
• B) a classified board is one in which an announcement requesting applications for board members appears in the newspaper.
• C) in a classified board, it is easier for dissidents to gain representation since fewer seats are up for election each year.
• D) inside directors are more concerned with shareholders' interests since they are more closely concerned with firm operations.
• E) management is said to be entrenched when the senior managers are consuming excessive perquisites.

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Definitions:

Spot Rate

The current market price of a currency, security, or commodity available for immediate settlement.

Absolute Purchasing Power Parity

A theory that suggests that, in the absence of transaction costs and other barriers, identical goods and services in different countries should have the same price when expressed in a common currency.

Exchange Rate

The amount one currency is valued at when translated into another currency.

Kilogram

The base unit of mass in the International System of Units (SI), equivalent to 1,000 grams or approximately 2.20462 pounds.