If Cumulative Voting Is Permitted

question 20

Multiple Choice

If cumulative voting is permitted:

• A) the total number of votes a shareholder has is equal to the number of shares owned.
• B) the total number of votes a shareholder has is equal to the number of shares owned times the average number of years the shareholder has owned the shares.
• C) the total number of votes a shareholder has can be calculated as the number of shares owned times the number of directors to be elected.
• D) the total number of votes a shareholder has is equal to the number of shares times the number of board meetings the shareholder has attended.
• E) None of these.

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Definitions:

Cash Flows

The net amount of cash being transferred into and out of a business, considered vital for its solvency.

Financing Activities

Transactions related to raising capital and repaying investors, including issuing equity, obtaining loans, and paying dividends.

Cash Flows

The total amount of money being transferred into and out of a business, affecting its liquidity.

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.