81.The board of directors of a corporation elected by the
81.The board of directors of a corporation is elected by the ________.
b.bondholders and other creditors
82.When founding members of Mary Kay Inc. wanted to regain family control of the cosmetics business, they changed the company ownership from publicly held to ________, in order to control and manage corporate activities.
83.Isabella owns 100 shares of IBM ________ stock, which means she has voting rights on company decisions at IBM, but only residual claims on the company’s assets.
84.All of the following are duties of the board of directors of a corporation EXCEPT ________.
a.guaranteeing the payment of cash dividends every year
b.electing its own officers
c.hiring the corporation’s chief executive officer
d.authorizing major transactions of the corporation
85.The board of directors usually includes some individuals who are not employed by the corporation. These people are referred to as ________.
d.members of top management
86.Lucia is a chief financial officer in a large corporation. Her responsibilities include the full financial authority to make appropriations and authorize expenditures. Lucia is likely to be a member of ________ management.
87.___________ must verify in writing the accuracy of their corporation’s financial statements.
c.CEOs and CFOs
88.An acquisition occurs when ________.
a.one company purchases the property and assumes the obligations of another company
b.one corporation owns 8 percent of the stock of another corporation
c.owners of small companies band together to operate their businesses collectively
d.two or more firms combine to form a single company
89.United Airlines’ purchase of Continental Airlines combines the resources and capabilities of both firms to create the world’s largest airline. The newly formed company is an example of a _____________.
90.If Smith Steel buys Kennedy Iron Ore to assure itself of a constant flow of ore, this is an example of a ________.