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Chapter 21: Proxy Statements Guide Quiz
Test your knowledge of the proxy statements chapter material!
1 / 10
True or false: Shareholder proposals must be accepted by the company.
In the end, these shareholder proposals tend to be advisory proposals, meaning the board can ultimately ignore them. Read more on page 237.
Correct! In the end, these shareholder proposals tend to be advisory proposals, meaning the board can ultimately ignore them.
2 / 10
Any perk or benefit provided to executives that is worth over ______ must be itemized on the proxy statement.
Answer can be found on page 233.
Correct!
3 / 10
The reported values of Stock-Based Compensation are:
Since the true value will fluctuate over time with a company’s stock price, these values are estimated. Read more on page 232.
Correct! Since the true value will fluctuate over time with a company’s stock price, these values are estimated.
4 / 10
Revision proxy statements are ______ other types.
Answer can be found on page 231.
5 / 10
Which organization is a good resource if you want an investor’s perspective on pay practices?
Answer can be found on page 237.
6 / 10
If over 50% of the voting power of a company is held by an individual or group, that company is considered a __________.
Answer can be found on page 238.
7 / 10
When minority shareholders file a proxy statement seeking to oust members of the company board, this is called:
8 / 10
Where can proxy statements be found?
Correct! Proxy statements can always be found on the SEC’s EDGAR database, and you may also be able to find them on corporate websites or investor-relations pages too.
9 / 10
True or false: Companies are supposed to explain why executives got paid what they did in proxy statements.
Read more on page 234.
Correct! You’ll find this explanation in the Compensation Discussion and Analysis section, though it can be difficult to decipher.
10 / 10
What is a company’s final proxy statement filed as in EDGAR?
Correct! This is also referred to as a “definitive” proxy.
Your score is
The average score is 85%
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