Jen Owns 30 Shares of Stock in Delta Fashions and Wants

question 30

Multiple Choice

Jen owns 30 shares of stock in Delta Fashions and wants to win a seat on the board of directors. The firm has a total of 100 shares of stock outstanding. Each share receives one vote. Presently, the company is voting to elect three new directors. Which one of the following statements must be true given this information?

• A) Regardless of the voting procedure, Jen does not own enough shares to gain a seat on the board.
• B) If straight voting applies, Jen is assured a seat on the board.
• C) If straight voting applies, Jen can control all of the open seats.
• D) If cumulative voting applies, Jen is assured one seat on the board.
• E) If cumulative voting applies, Jen can control all of the open seats.

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Definitions:

Criminal Responsibility

The legal liability or accountability of an individual for committing a crime, indicating culpability.

Disorderly Conduct

A broad legal term encompassing various acts deemed disruptive to public peace and decent behavior.

Misdemeanor

A lesser crime than a felony, punishable by a fine or imprisonment for up to one year in other than a state or federal penitentiary.

Imprisonment

Imprisonment refers to the act of confining someone in a prison as a punishment for a crime they have been convicted of.