A Firm Has 200,000 Shares Outstanding

question 344

Multiple Choice

A firm has 200,000 shares outstanding. If three directors will be elected, how many shares do you need to control to assure yourself a seat on the board under cumulative voting procedures?

• A) 30,001
• B) 40,001
• C) 50,001
• D) 66,668
• E) 100,001

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Definitions:

Intellectual Property

Intangible property that is the product of one’s mind and not one’s hands.

Corporate Stocks

Equity investments representing ownership in a corporation, allowing shareholders to claim on assets and earnings.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources.

Insurable Interest

A stake in the value of an entity or event for which an insurance policy is purchased to mitigate the risk of loss.