The System of Electing a Board of Directors Where Each

question 50

Multiple Choice

The system of electing a board of directors where each director is voted on separately is known as:

• A)Majority voting
• B)Supermajority voting
• C)Cumulative voting
• D)Proxy voting

---

Definitions:

COGS

Cost of Goods Sold represents the direct costs associated with the production of the goods sold by a company.

Line of Credit

A flexible loan arrangement with a financial institution that allows a borrower to draw funds up to a specified limit at any time.

Compensating Balance

A minimum bank account balance that a borrower must maintain as a condition for some types of loans and lines of credit.

Effective Annual Interest Rate

The interest rate that is adjusted for compounding over a given period. Essentially, it reflects the total interest that will be paid or earned over a year, taking into account the effect of compounding.