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The management of Demo You Inc. controls 58% of the companys stock. The firm did not meet any of its quarterly sales project

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Answer : Correct Option is They would want to make sure the company's charter contains a shareholder rights provision.

Reason :

If the institutional Investors believes that the company has not been able to achieve its performance then they will insits on having a clause in the charter through which management will act in the best interest of shareholder as now they are enjoying 58% rights which will now be shared.

Answer : Correct Option is The board's decision is extremenly risky and not very practical.

Reason:

By giving all cash in the form of dividend , when cash will be needed the company will face extreme difficulty in meeting unexpected costs . Therefore The board's decision is extremenly risky and not very practical.

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