Cumulative Voting Is the Procedure Whereby a Shareholder

question 110

Multiple Choice

Cumulative voting is the procedure whereby a shareholder:

• A) Can authorize another party to vote on his or her behalf.
• B) Casts one vote per share of stock owned for each open position on the board of directors.
• C) May cast all of his or her votes for one candidate for the board of directors.
• D) Who owns preferred stock can cast his or her votes for candidates for the board of directors.
• E) Can revote until a majority of the votes are cast for one candidate for each seat on the board of directors.

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Definitions:

Maximin Strategy

A decision-making rule used in situations with uncertainty to maximize the minimum gain that can be achieved.

Prisoners' Dilemma

A scenario in game theory where two individuals act in their own self-interest but would have been better off cooperating.

Collusive Outcome

A situation in which firms in a market or industry agree to set prices or output levels cooperatively, often leading to higher prices for consumers.

Maximin Strategy

A decision rule used in situations of uncertainty to maximize the minimum gain that can be secured.