PolyProduction Inc

question 60

Multiple Choice

PolyProduction Inc. has two classes of common stock. Class A has 5 million shares with 10 votes per share. Class B has 5 million shares with 1 vote per share. If the dividends per share are equal for both class A and B stock, then Class A shareholders have ________ of the votes and ________ of the dividends.

• A) 90.91%; 90.91%
• B) 90.91%; 50.00%
• C) 50.00%; 50.00%
• D) 83.33%; 33.33%

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Definitions:

Control Variance

The difference between expected performance standards and actual performance, used for budget and performance evaluation.

Productive Capacity

Refers to the maximum output or productive ability of resources, facilities, or organizations, emphasizing efficiency and optimization.

Contribution Margin

The contribution margin is the difference between total sales revenue and total variable costs, indicating how much revenue contributes towards covering fixed costs and profit generation.

Underutilising

Refers to the scenario where resources are not being used to their full potential or capacity, often leading to inefficiency or wastage.