It Is Easier for an Outsider to Gain Control Over

question 95

Multiple Choice

It is easier for an outsider to gain control over a corporation when:

• A) Voting by proxy is not permitted.
• B) Management controls most of the common shares outstanding.
• C) Cumulative voting is used.
• D) Preferred shares are not convertible.
• E) Shareholders receive a consistently high rate of return.

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Definitions:

External Perspective

External perspective is the viewpoint of someone not directly involved in an organization or situation, offering insights or judgments from outside.

Human Behavior

The range of actions and mannerisms exhibited by humans in conjunction with their environment, influenced by culture, attitudes, emotions, and other factors.

Skill Development

The process of identifying skill gaps and learning new skills or improving existing ones through training, experience, and education to enhance personal and professional growth.

Objective Knowledge

Knowledge that is based on factual information and evidence, independent of personal feelings, interpretations, or prejudice.