Illustrate the Difference Between Majority and Cumulative Voting Systems Using

question 63

Essay

Illustrate the difference between majority and cumulative voting systems using as an example a shareholder who owns 1,000 shares and an election in which three directors will be selected. Why might shareholders care about which voting system is adopted?

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Definitions:

Operating Activities

Operating activities involve the primary revenue-generating activities of an entity, as reflected in its profits or losses from core operations.

Depreciation

The method of allocating the cost of a tangible asset over its useful life, reflecting the loss of value over time.

Accounts Payable

Liabilities to creditors for goods, services, or supplies delivered or used in the earning process but not yet paid for.

Free Cash Flow

A financial measure representing the amount of cash generated by a business that is available for distribution to its security holders after accounting for reinvestment in assets.