Multiple Choice
Which of the following is primarily concerned with providing information to internal users for decision-making purposes?
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1. Introduction to Accounting
Types of Accounting
Multiple Choice
Which of the following terms refers to the grant of authority by a shareholder to someone else to vote his or her shares?
A
Debenture
B
Dividend
C
Quorum
D
Proxy
Verified step by step guidance1
Understand the question: The problem is asking for the term that refers to the grant of authority by a shareholder to someone else to vote on their behalf.
Review the provided options: Debenture, Dividend, Quorum, and Proxy. Each term has a specific meaning in financial accounting and corporate governance.
Define each term: A 'Debenture' is a type of long-term debt instrument. A 'Dividend' is a distribution of a portion of a company's earnings to its shareholders. A 'Quorum' refers to the minimum number of members required to conduct a meeting. A 'Proxy' is the authority granted by a shareholder to another person to vote on their behalf.
Identify the correct term: Based on the definitions, the term that matches the description of granting authority to vote on behalf of a shareholder is 'Proxy.'
Conclude: The correct answer is 'Proxy,' as it directly refers to the delegation of voting rights by a shareholder to another individual.
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