The System of Electing a Board of Directors Where Each

question 41

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.

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Definitions:

Controlling Interest

Ownership interest in a business entity that gives the holder the power to direct or influence the direction of management and policies.

Consolidation Worksheet

An instrument utilized for creating combined financial reports that merges the finances of a parent entity with those of its subsidiary companies.

Goodwill Impairment

An accounting process involving the reassessment of the value of goodwill on the balance sheet and reducing it if its market value has declined below the carrying value.

Noncontrolling Interest

Noncontrolling interest is a financial stake in a subsidiary held by investors other than the parent company, reflecting their share of the subsidiary's net assets and earnings.