If You Own 1,000 Shares of Common Stock of a Firm

question 46

Multiple Choice

If you own 1,000 shares of common stock of a firm and there are five directors being elected, what is the maximum number of votes you can cast for a particular director under majority voting?

• A)5,000
• B)1,000
• C)200
• D)5

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Definitions:

Progressive

Pertaining to a taxation system where the tax rate increases as the taxable amount increases, aiming for a more equitable distribution of wealth.

Inelastic

A characteristic of a good or service whose demand does not change significantly when its price changes.

Efficiency Loss

Reductions in combined consumer and producer surplus caused by an underallocation or overallocation of resources to the production of a good or service. Also called deadweight loss.

Perfectly Inelastic

A situation where the demand or supply for a good or service remains unchanged regardless of changes in its price.