A Shareholder Owning 100 Shares of Stock Is Voting for the Board

question 68

Multiple Choice

A shareholder owning 100 shares of stock is voting for the board of directors who are elected by cumulative voting.How many votes will the shareholder cast for Director "A" if four directors are to be elected and the maximum number of votes are cast for "A"?

• A) 25
• B) 100
• C) 200
• D) 400

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Definitions:

Cartel

An association of manufacturers or suppliers designed to maintain high prices and restrict competition.

Collusive Agreement

An arrangement between two or more firms, usually covert, to limit competition and manipulate prices or market conditions to their advantage.

Restricting Output

involves limiting the production of a product or service to increase prices or maintain scarcity.

Limit-Pricing Strategy

A pricing strategy used by monopolies or dominant firms to set prices low enough to deter entry by potential competitors.