There Are Three Seats Open on the Board of Directors

question 26

Multiple Choice

There are three seats open on the board of directors of ABC, Inc. Ann owns voting shares of ABC common stock. If ABC uses cumulative voting, the maximum number of shares that Ann can vote for any one position is equal to:

• A) The number of open seats.
• B) One-third of the number of shares owned.
• C) The number of shares owned.
• D) Three times the number of shares owned multiplied by the number of open seats.
• E) The number of seats open times the number of shares owned.

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Definitions:

Deposits

Funds placed into banking institutions for safekeeping, which can earn interest over time depending on the type of account.

Federal Open Market Committee

The branch of the Federal Reserve System that determines the direction of monetary policy, including decisions on interest rates and the growth of the United States money supply.

Regional Fed Presidents

Officials who head the regional Federal Reserve Banks, playing key roles in monetary policy discussions and implementation in the United States.

Voting

The act of expressing a choice or preference in a public election or decision-making process.