CFA Practice Question

There are 233 practice questions for this study session.

CFA Practice Question

Which of the following is least likely to concern an investor evaluating a corporation's shareowner rights provisions?
A. Shareowners may nominate board members.
B. Shares held by the founding family have supernormal voting rights.
C. To ensure accuracy, company executives tabulate and verify shareowner voting.
Explanation: The ability to nominate one or more individuals to the board can prevent erosion of shareowner value. Shareowners may be able to force the board or management to take steps to address shareowner concerns.

User Contributed Comments 3

User Comment
asalonga7 Can someone explain why the ability for shareholders to nominate their own board members is the least concerning on this list. The explanation makes it seem like its an important issue or at least something not insignificant.
CJPerugini Think of it this way, would you be more or less concerned if only the government elected our President? It acts as a checks and balances.
Ricey C seems like a good approach to justify shareholder's voting rights, but A is better.
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