[Self-Centered President] Allison Is President of "We Manage You," a Corporation

question 10

Multiple Choice

[Self-Centered President] Allison is president of "We Manage You," a corporation set up to manage physician practices. Allison has never been very concerned with minority shareholders because she believes that they have little influence over the company since they cannot even elect a director. She is told, however, that her state just instituted the practice of cumulative voting. An election is coming up in which 10 directors will be elected. Minority shareholders own 2,000 shares, while majority shareholders own 8,000 shares. Allison tells her vice president, Marco, that she wants to ignore minority shareholders and focus her interests on majority shareholders and the directors. She also tells Marco that she wants to be particularly conscientious toward directors because the directors appoint officers, and she does not believe that she owes any actual duties to shareholders. She further orders Marco to destroy some documents subpoenaed in a criminal investigation against the company for illegal dumping. When Marco protests, Allison tells him not to worry because officers cannot be held responsible for criminal actions so long as the actions are done as part of the duties of an officer. She explains to him that only the corporation can be charged with liability in such cases.
-How many votes will the minority shareholders have in the election?

• A) 2,000
• B) 4,000
• C) 6,000
• D) 10,000
• E) 20,000

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Definitions:

Critical Period

A critical period is a specific time during an organism's life span when it is particularly receptive to certain stimuli or experiences, which can have a profound and lasting impact on development.

Social Skills

Abilities that facilitate interaction and communication with others.

Early Maturation

The process of reaching physical and sexual development sooner than what is considered typical for a particular age group.

Contrasting Effects

Refers to the phenomenon where different stimuli or conditions produce opposite or varying outcomes in behavior or responses.