If Shareholders Agree to Vote in a Specified Manner for the Election

question 27

Multiple Choice

If shareholders agree to vote in a specified manner for the election or removal of directors,this is known as:

• A) a proxy.
• B) cumulative voting.
• C) a voting trust.
• D) a shareholder voting agreement.

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Definitions:

Patents

Legal rights granted to inventors that prevent others from making, using, or selling an invention for a certain period of time.

Marketable Securities

Financial instruments that can be easily converted into cash because they have high liquidity and short maturities.

Financial Leverage

Employing the use of debt to boost the prospective profits of an investment, which in turn escalates the risk of experiencing a loss.

Debt-To-Equity Ratio

The ratio portraying the financial interplay between shareholder equity and debt in the capital structure for assets.