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Question
Jen owns 30 shares of stock in Delta Fashions and wants to win a seat on the board of directors. The firm has a total of 100 shares of stock outstanding. Each share receives one vote. Presently, the company is voting to elect three new directors. Which one of the following statements must be true given this information?
A) Regardless of the voting procedure, Jen does not own enough shares to gain a seat on the board.
B) If straight voting applies, Jen is assured a seat on the board.
C) If straight voting applies, Jen can control all of the open seats.
D) If cumulative voting applies, Jen is assured one seat on the board.
E) If cumulative voting applies, Jen can control all of the open seats.
Answer
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Related questions
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Q:
Which one of the following questions is least likely to be addressed by financial managers?
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Q:
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A) issue date.
B) offer date.
C) declaration date.
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E) ex-rights date.