Which of the following companies permits shareholder groups holding at least 3% of the company’s stock...

Which of the following companies permits shareholder groups holding at least 3% of the company’s stock to directly nominate candidate for its board?

GE.
Yahoo.
Uber.
Snap Inc.

Which of the following statements is INCORRECT?

Unlimited liability makes it difficult for proprietorship to raise large amount of capital.
Chairman of the board often serves as a firm’s CEO.
Sarbanes-Oxley Act (SOX) emphasizes that CEO and CFO are not required to certify annual report because the firm has already hired the accounting firm to certify all of its financial statements, including annual reports.
The higher expected cash flows and the lower perceived risk, the higher stock price would be.
When a stock’s price is equal to its intrinsic value, the stock in in equilibrium.

Expert Solution

Solution:-
GE allows shareholder groups holding at least 3% of the company's stock to directly nominate candidates for its board


Chairman of the board often serves as a firm’s CEO.
Is incurrect
All public companies have a board of directors headed by a chairman, who influences the board; they also have a chief executive officer, who is the top manager in the company.
In some companies, the chairman also serves as the chief executive officer; while this can streamline some operations, there are also arguments against one person holding this dual role.
Executive pay is decided by a corporate board, meaning a CEO who is also chairman votes on their own compensation—a clear conflict of interest.
Boards must have a management-free audit committee report to them on corporate oversight, creating a conflict of interest if the company's top manager, the CEO, is also the chairman of the board.

jeff jeffy answered 1 year ago

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