Jack Owns 35 Shares of Stock in Beta, Inc

question 17

Multiple Choice

Jack owns 35 shares of stock in Beta, Inc. and wants to exercise as much control as possible over the company. Beta, Inc. has a total of 100 shares of stock outstanding. Each share receives one vote. Presently, the company is voting to elect two new directors. Which one of the following statements must be true given this information?

• A) If straight voting applies, Jack is assured one seat on the board.
• B) If straight voting applies, Jack can control both open seats.
• C) If cumulative voting applies, Jack is assured one seat on the board.
• D) If cumulative voting applies, Jack can control both open seats.
• E) Regardless of the type of voting employed, Jack does not own enough shares to control any of the seats.

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Definitions:

President John Tyler

The 10th President of the United States, serving from 1841 to 1845, known for his annexation of Texas.

Whig Party

A political party active in the middle of the 19th century in the United States, primarily opposing the policies of Andrew Jackson and the Democrats.

Democratic Party

One of the two major political parties in the United States, historically associated with progressive and liberal policies.

Jackson's Re-Election

The successful bid for a second term as President by Andrew Jackson in 1832, demonstrating the strength of Jacksonian democracy.