Which of the Following Statements Is True with Respect to Cumulative

question 23

Multiple Choice

Which of the following statements is true with respect to cumulative voting?

• A) Cumulative voting permits multiple votes for a single director.
• B) Cumulative voting gives minority shareholders a better chance of being represented on the board of directors.
• C) If six directors are to be elected and you own 100 shares, you may vote all 600 votes for one director and none for the others.
• D) All of these options are true.

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Definitions:

Cash Flow Hedge

A financial strategy used to manage the risk of fluctuations in cash flow due to changes in exchange rates, interest rates, or commodity prices.

Other Comprehensive Income

Income that is not part of net income, including items that have not been realized or that are not typical earnings, such as foreign currency translation adjustments.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is globally accepted.

Fair Value

The price at which an asset or liability could be exchanged between knowledgeable, willing parties in an arm's length transaction.