Suppose Lisa Owns 1,000 Shares of a Corporation

question 73

Multiple Choice

Suppose Lisa owns 1,000 shares of a corporation.Assume that four directors are to be elected to the board.With ________ voting,Lisa can multiply the number of shares she owns (1,000) by the number of directors to be elected (four) ,and she can cast all the resulting votes (4,000) for one candidate or split them among candidates as she determines.

• A)supramajority
• B)noncumulative
• C)cumulative
• D)preemptive

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Definitions:

Dishonored Notes

Refer to promissory notes that have not been paid by the maker at maturity.

Accounts Receivable Method

A technique for estimating the amount of uncollectible accounts receivable and setting aside an allowance for bad debts, reflecting more accurate financial statements.

Allowance for Doubtful Accounts

A contra asset account that reduces the total receivables on the balance sheet by the amount estimated to be uncollectible.

Aging Accounts Receivable

A method of categorizing accounts receivable based on how long an invoice has been outstanding, used to identify potential bad debts.