Firm Y Has 5,000,000 Outstanding Shares

question 95

Multiple Choice

Firm Y has 5,000,000 outstanding shares.There are 11 directors on the firm's board.The Bubba family owns 20% the firm's stock.How many directors can the Bubba family elect by themselves if firm Y uses majority voting?

• A) 0
• B) 1
• C) 2
• D) 3

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Definitions:

Straight-Line Depreciation

A method of evenly distributing the cost of an asset over its useful life.

Salvage Value

Salvage value is the estimated residual value of an asset at the end of its useful life, indicating what a company expects to recover or sell the asset for.

Depreciation Expense

The calculated apportionment of the price of a tangible asset over the duration it is useful.

Components

The individual parts or elements that make up a larger product, system, or machine.