If You Own 1,000 Shares of Common Stock of a Firm

question 41

Multiple Choice

If you own 1,000 shares of common stock of a firm and there are five directors being elected, What is the maximum number of votes you can cast for a particular director under cumulative voting?

• A) 5,000
• B) 1,000
• C) 200
• D) None of the above

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Definitions:

Lease Capitalization

The process of recognizing and recording a lease as an asset and a liability on the balance sheet, reflecting its long-term nature.

GAAP

Generally Accepted Accounting Principles; a collection of commonly followed accounting rules and standards for financial reporting.

IFRS

International Financial Reporting Standards, a set of accounting standards designed to ensure transparency, accountability, and efficiency in financial statements globally.

Fair Value

The estimated price at which an asset can be bought or sold in a current transaction between willing parties, other than in a liquidation sale.