There Are 5 Seats Open on the Board of Directors

question 393

Multiple Choice

There are 5 seats open on the board of directors of Alpha, Inc. Jason wants to be positive that he can be elected to one of these positions. Alpha uses cumulative voting. There are 1,500 shares of Alpha stock outstanding. Twenty% of the shares are owned by Midge, 30% are owned by Peter, 10% are owned by Jeff, 25% are owned by Jason and the rest are owned by Edward. How many additional shares of stock must Jason buy to ensure that he wins a seat?

• A) 0
• B) 56
• C) 116
• D) 251
• E) 376

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Definitions:

Disbursement of Funds

The act of paying out money from a fund or account to cover expenses or investments.

Collateral Position

Collateral is property or assets that a borrower offers to a lender as security for a loan, which can be taken by the lender if the borrower fails to repay.

Stretching Payables

Paying invoices after they’re due according to the terms of sale. Also called leaning on the trade.

Short-term Loans

Loans that are scheduled for repayment within a short timeframe, usually less than one year.