Andrew Flint Is the CEO of a Small,publicly Held Company

question 8

Multiple Choice

Andrew Flint is the CEO of a small,publicly held company based in Idaho Falls,Idaho.Flint earned $76,000 last year as CEO.Investors in Flint's firm are earning nearly 15 percent on their shares.Flint has learned that the SEC is considering a proposed rule mandating salary studies for all publicly held firms.Flint has priced such studies and has estimates ranging from $27,000 to $40,000.Flint would like the SEC to understand his firm's position.Which of the following statements is true?

• A)Flint will need to hire a lawyer to present evidence to the SEC.
• B)Flint can challenge the rule only after promulgation.
• C)Flint's challenge must be made in court.
• D)Flint can simply write to the SEC to voice his concerns.

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Definitions:

Actively Traded

Refers to stocks, securities, or other financial instruments that are frequently bought and sold, often indicated by high trading volumes.

Foreign Currency Futures

Financial contracts obligating the buyer to purchase, and the seller to sell, a specified amount of foreign currency at a predetermined future date and price.

Euro

The official currency of 19 out of the 27 European Union countries, which is used as a common form of currency in international financial transactions.

British Pound

The official currency of the United Kingdom, also known as GBP (Great British Pound).