The Purpose of Cumulative Voting Is

question 64

Multiple Choice

The purpose of cumulative voting is:

• A) to maintain majority control of the board of directors.
• B) to allow minority shareholders the possibility of a voice on the board of directors.
• C) to obstruct unfriendly mergers and takeover efforts.
• D) to prevent the dilution of common stock through preemptive rights offerings.

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Definitions:

Passive Voice

A grammatical construction where the object of an action becomes the subject of the sentence, emphasizing the action rather than the doer.

Priority

The fact or condition of being regarded or treated as more important than others.

Daily Log

A record maintained on a daily basis, listing activities, completed tasks, and noteworthy events, often used for personal or professional tracking.

Follow-up Correspondence

The exchange of communication that occurs after an initial meeting or conversation, aiming to continue dialogue or confirm outcomes.