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

question 43

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.

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Definitions:

Constant Returns to Scale

A situation in production where increasing the amount of inputs results in a proportional increase in the output.

Long-run Total Costs

The aggregate expenses a firm incurs in the production of goods or services when all factors of production are variable.

Average-total-cost Curve

A graphical representation showing the average total cost of producing different quantities of a good or service, illustrating how costs vary with changes in output.

Average-fixed-cost Curve

A graphical representation showing how the average fixed cost of production decreases as the quantity of output increases.