A Shareholder Who Owns Sufficient Shares to Outvote the Other

question 3

Multiple Choice

A shareholder who owns sufficient shares to outvote the other shareholders,or to otherwise set corporate policy,and thus to control the corporation is known as a(n) __________ shareholder.

• A) controlling
• B) absolute
• C) manipulative
• D) chargeable

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Definitions:

Total Contribution Margin

This refers to the total amount of revenue left over after deducting all variable costs, indicating the total contribution towards covering fixed costs and generating profit.

Break-even Point

The point at which total revenue equals total costs, resulting in no profit or loss for the business.

Sales Mix

The combination of different products or services that a company sells, which impacts the overall profitability.

Contribution Margin Ratio

A ratio that measures the percentage of sales revenue available to cover fixed expenses and generate profit, calculated as the contribution margin divided by sales revenue.