Which one of the following statements is TRUE?
A. A shareholder-friendly charter will make it easier for a company to be acquired.
B. A company whose board members are elected in staggered terms is said to be an interlocking board of directors.
C. A shareholder-friendly charter will make it easier for shareholders to meet with the CEO if they have concerns.
D. A targeted share repurchase can be used to encourage a hostile takeover.
E. An example of an agency cost is when the board of directors pays a dividend to shareholders.
Answer: A
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