A Firm Has Four Open Positions on Its Board of Directors.How

question 14

Multiple Choice

A firm has four open positions on its board of directors.How many shares do you need to own to guarantee your own election to the board if the firm has 387,500 shares of stock outstanding and uses cumulative voting? Each share is granted one vote.

• A)33,334 shares
• B)77,501 shares
• C)75,251 shares
• D)70,501 shares
• E)96,876 shares

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied is exactly equal to the quantity demanded at a particular price.

Shift Demand

A change in the quantity demanded at every price level, resulting in the demand curve moving left or right.

Complement

A good or service that is used together with another, where an increase in demand for one leads to an increase in demand for the other.

Substitute

A product or service that can be used in place of another to satisfy similar needs or desires.