Your Firm Is Converting from Cumulative Voting to Straight Voting

question 270

Multiple Choice

Your firm is converting from cumulative voting to straight voting. You currently own the minimum number of shares needed to assure yourself a seat on the board in any election under cumulative voting. How many more shares must you purchase in order to assure yourself a seat under straight voting? Assume there are a total of 500,000 shares outstanding and that three directors go up for election at a time.

• A) 0
• B) 25,000
• C) 125,000
• D) 250,000
• E) 250,001

Recognize the advantages and disadvantages of sole proprietorships.

Comprehend the strategies and intended audience of hedge funds.

Distinguish between different types of stock exchanges and their characteristics.

Explain the concept of a dealer market.

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Definitions:

Fiduciary Responsibility

The obligation to act in the best interest of another party, such as a trustee acting for the benefit of the trust's beneficiaries.

Prudently

Acting with or showing care and thought for the future, often within the context of managing finances or making financial decisions.