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:

Extraordinary

Refers to gains or losses in a company's financial statements that are both unusual and infrequent in nature.

Securitization Entity

A structured entity created to pool various financial assets and then sell them to investors, converting illiquid assets into liquid ones.

Collateralized Borrowing

A loan secured by pledging an asset as collateral, ensuring the lender can seize the asset if the borrower defaults.

Significant Benefits

These refer to notable advantages or positive impacts, often seen in the context of employee compensation, strategic decisions, or investments.