Which one of the following statements is NOT accurate in relation to shareholders and their conduct in a? corporation?
A. Because shareholders elect the? directors, in theory the shareholders are the final governing body of the corporation.
B. Shareholder activism has become a progressively noticeable issue in corporate governance.
C. Because shareholders elect the? directors, institutional stockholderslong dash—such as pension? funds, insurance? companies, mutual? funds, religious? organizations, and college endowment fundslong dash—have significant impact on the governance of corporations.
D. Even though most do not have any direct participation in firm? management, shareholders play a significant role in corporate governance.
E. Activist shareholders are becoming better prepared and more classy.
A. Because shareholders elect the? directors, in theory the shareholders are the final governing body of the corporation.
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Torrie is thinking of starting up a small business selling hand-painted wine glasses. She is considering setting up her business as a sole proprietorship. What is one disadvantage to Torrie of setting up her business as a sole proprietorship?
A) As a sole proprietor, Torrie would face unlimited liability. B) As a sole proprietor, Torrie would be subject to significant rules and regulations. C) As a sole proprietor, Torrie would be taxed twice. D) As a sole proprietor, Torrie would not have control of the business.
Which of the following is not a principal-agent relationship?
a. Adam and Gloria get married. b. Payless, Getless, Inc., hires a salesperson. c. Dixie hires a lawyer. d. Citizens elect a state senator. e. Opal gets her car repaired.
"Rolling over" the debt means
a. to repay old bonds that come due for payment by issuing new bonds. b. to repay old bonds that come due by printing money. c. dividing the tax burden of the debt across the fifty states based on their share of the population. d. dividing the tax burden of the debt across the fifty states based on their share of economic activity. e. to repay old bonds that come due by giving gold to the bondholders from the national gold depository in Fort Knox..
A monopolistic competitive firm is inefficient because the firm:
A. earns positive economic profit in the long run. B. is producing at an output corresponding to the condition that marginal cost equals price. C. is not maximizing its profit. D. produces an output where average total cost is not minimum.