Indicate Whether Each of the Following Items Is True or False

question 35

Essay

Indicate whether each of the following items is true or false.
_____ a) Many successful corporations do not pay dividends to their stockholders.
_____ b) Careful study of the financial statements will give investors the ability to predict future movements in the market price of a corporation's stock.
_____ c) The chief executive officer (CEO) of a corporation is usually not also a member of the board of directors.
_____ d) Dismissing an incompetent manager can be complicated when a company is experiencing entrenched management.
_____ e) The number of shares to purchase in order to attain "significant influence" of a corporation can readily be determined from the financial statements.

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Definitions:

Moral Principles

Fundamental beliefs about what is right and wrong that guide an individual's actions and decisions.

Entitlements

Rights or benefits guaranteed to individuals or groups, often by law or contractual arrangement.

Rights

Entitlements or permissions, either legal, social, or moral, that individuals are given based on certain principles or standards.

Ethical Dilemma

A situation where a person faces a choice between two actions that are ethically challenging or conflict with moral imperatives.