A Situation Where Every Director Serves a Three-Year Term and the Terms

question 4

Multiple Choice

A situation where every director serves a three-year term and the terms are staggered so that only one-third of the directors are up for election each year is called a:

• A)white knight.
• B)classified board.
• C)poison pill.
• D)golden parachute.
• E)recapitalization.

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Definitions:

Bondholders

Individuals or entities that hold the debt securities issued by corporations or governments, entitled to receive interest payments and the return of principal.

Solvency Measure

Financial metrics used to evaluate a company's ability to meet its long-term debts and financial obligations.

Long-term Basis

An approach or strategy focused on goals, investments, or plans that extend beyond the immediate or short-term period.

Accounts Receivable Turnover

A ratio that measures how effectively a company collects its receivables or the efficiency of its credit policies.