Which of the Following Is Correct Concerning the Election of Directors

question 12

Multiple Choice

Which of the following is correct concerning the election of directors?

• A)Straight voting is the cleanest way to allocate equity ownership of the corporation among shareholders.
• B)In cumulative voting,each share has one vote for each new director to be elected.
• C)Cumulative voting can prevent harmful coalitions in close corporations.
• D)Under straight voting,the voting power of minority shareholders is increased.

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Definitions:

Resource

An economic input used to produce goods and services, such as labor, capital, and natural resources.

Land

In economics, it refers to all natural resources used to produce goods and services, including agricultural and undeveloped land.

Interest Rate

The cost of borrowing money or the reward for saving, usually expressed as a percentage of the principal amount per period.

$100

A monetary denomination or value equivalent to one hundred U.S. dollars.