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:

College Expenses

The costs associated with attending college, including tuition, fees, books, and living expenses.

Lodging

Accommodation in hotels, motels, or any other establishment that provides a place to stay for a short period.

Rational Choice

A theory in economics and sociology that suggests individuals choose the option that provides the highest level of satisfaction, assuming the availability of information and a clear preference set.

Opportunity Cost

The effect of spurning potential profits from various options by selecting a particular one.