Denver Wool Is Owned by a Group of Shareholders Who

question 20

Multiple Choice

Denver Wool is owned by a group of shareholders who all vote independently and who all want personal control over the firm.There are three open seats and Danielle is one of six contenders.If straight voting is utilized and Danielle is a current shareholder,then he

• A)is only permitted to elect one director,regardless of the number of shares he owns.
• B)will be assured of his election if he owns at least one-sixth,plus one,of the outstanding shares.
• C)must own at least two-thirds of the shares,plus one,to exercise control over the elections.
• D)can only be assured of his election if he owns sufficient shares to control the entire election.
• E)can be assured of his election provided he owns more shares than any other single shareholder.

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Definitions:

Straight-line Method

A depreciation method where the value of an asset is reduced evenly over its useful life.

Journal Entries

Records of financial transactions in the accounting system, indicating the accounts and amounts to be debited and credited.

Equipment Cost

The purchase price of machinery and tools required for manufacturing or providing services, excluding ongoing operating expenses.

Salvage Value

The calculated sale amount an asset is deemed to achieve after its useful life concludes.