You Are a Shareholder in Trees N Things (TNT)and You

question 60

Multiple Choice

You are a shareholder in Trees N Things (TNT) and you would like to elect 6 of the 11 members of the Board of Directors.If there are 3.5 million shares outstanding what is the minimum number of shares required to elect your slate of directors under cumulative voting?

• A) 2,000,001
• B) 3,000,001
• C) 1,909,091
• D) 1,750,001

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Definitions:

Generally Accepted Accounting Principles

The common set of accounting principles, standards, and procedures that companies use to compile their financial statements.

Lessee

The user of an asset in a leasing agreement. The lessee makes payments to the lessor.

Title

A legal term denoting ownership rights over property, assets, or legal documents.

CRA

An abbreviation that can stand for Credit Rating Agency, an organization providing assessments of the creditworthiness of securities or firms.