Which one of the following statements is TRUE?

Group of answer choices

A company whose board members are elected in staggered terms is said to have an interlocking board of directors.

A company has an interlocking board of directors if the CEO also serves as the chairman of the board of directors.

A classified board is one in which the board members serve anonymously.

Shareholders want to prevent takeovers because they don't want the company purchased out from under them.

A shareholder rights provision discourages takeovers because the acquiring company will suffer dilution.

Which one of the following statements is TRUE?

Group of answer choices

Management is said to be entrenched when the company is doing badly and is "stuck in a rut."

A manager avoiding a positive NPV but risky project is an example of a manager-shareholder conflict.

A quarter-end bonus is an example of a nonpecuniary benefit.

A company's matching contribution to a retirement plan is a nonpecuniary benefit.

Company sponsorship of a local charity is an example of a nonpecuniary benefit.

Which one of the following statements is TRUE?

Group of answer choices

The supervisor-employee relation between a production line supervisor and a production line operator is an example of an agency relationship.

An example of an agency relationship is when the CEO nominates a slate of candidates to be on the board of directors.

An agency cost is the wage required to pay someone who is hired to perform a service.

An example of an agency relationship is when a supervisor hires a forklift operator.

An example of an agency relationship is when the board of directors hires a CEO to run a company.