Which of the Following Statements Is True with Respect to Cumulative

question 85

Multiple Choice

Which of the following statements is true with respect to cumulative voting?

• A) Cumulative voting permits one votes for a single director.
• B) Cumulative voting gives minority shareholders less chance of being represented on the board of directors.
• C) If 6 directors are to be elected and you own 100 shares, you may vote all 600 votes for one director and none for the others.
• D) none of the other answers are correct

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Definitions:

Acid-Test Ratio

A strict metric used to assess if a business possesses sufficient current assets to meet its short-term obligations without the need to liquidate inventory.

Times Interest Earned

A financial metric indicating how many times a company can cover its interest obligations with its earnings before interest and taxes.

Debt-To-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, used as a measure of financial health.

Equity Multiplier

This financial ratio measures a company's leverage by comparing its total assets to its total shareholders' equity.