Which of the Following Statements Is True with Respect to Cumulative

question 69

Multiple Choice

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

• A) Cumulative voting requires 33% of board members to be re-elected every three years.
• B) Cumulative voting gives majority shareholders a better chance of being represented on the board of directors.
• C) If 6 directors are to be elected and you own 100 shares,you may vote all 100 votes for one director and none for the others.
• D) If 6 directors are to be elected and you own 100 shares,you may vote all 600 votes for one director and none for the others.

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Definitions:

Operating Income

Operating Income is the earnings before interest and taxes (EBIT) generated from a company's operational activities.

Income Tax Expense

The amount of money that a company is required to pay in taxes based on its taxable income.

Depreciation Expense

The method of allocating the cost of a tangible asset over its useful life, reflecting its decrease in value over time.

Operating Income

Earnings before interest and taxes (EBIT), calculated as gross profit minus all operating expenses, including depreciation and amortization.