Sharpe Products Has One Million Outstanding Shares and Seven Directors

question 27

Multiple Choice

Sharpe Products has one million outstanding shares and seven directors to be elected. Cumulonimbus Holdings owns 200,000 shares of Sharpe. How many directors can Cumulonimbus elect with cumulative voting?

• A) 0
• B) 1
• C) 2
• D) 3

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An individual or entity obligated to pay taxes to governmental authorities based on earnings or property ownership.

Securities Violations

Illegal activities involving the trading or handling of securities, such as insider trading, fraud, or manipulation of the market.

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A required standard of care that certain professionals, such as accountants, must meet to avoid liability for securities violations.