Illustrate the Difference Between Majority and Cumulative Voting Systems Using

question 63

Essay

Illustrate the difference between majority and cumulative voting systems using as an example a shareholder who owns 1,000 shares and an election in which three directors will be selected. Why might shareholders care about which voting system is adopted?

---

Definitions:

Maturity Value

The amount that will be paid out or received, including principal and interest, upon the expiration or maturity of a financial instrument.

Notes Receivable-Lewisburg Fabricators

A specific financial claim or loan that Lewisburg Fabricators holds against a debtor, documented through a promissory note indicating the amount owed and payment terms.

Balance

In accounting, balance refers to the difference between the sum of debits and credits in an account, often shown on financial statements like the balance sheet.

Aggressive Revenue Recognition

A practice where revenue is recognized before it meets the criteria for recognition, often inflating financial performance.