Chemical Mines Has 5,000 Shareholders and Is Preparing to Elect

question 28

Multiple Choice

Chemical Mines has 5,000 shareholders and is preparing to elect two new board members. You do not own enough shares to personally control the elections but are determined to oust the current leadership.Likewise,no other single shareholder owns sufficient shares to personally control the outcome of the election.Which one of the following is the most likely outcome of this situation given that some shareholders are happy with the existing management?

• A)negotiated settlement where each side is granted control over one of the open seats
• B)protracted legal battle over control of the board of directors
• C)arbitrated settlement where the arbitrator determines who will be elected to the board
• D)control of the board decided without your influence
• E)proxy fight for control of the board

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Definitions:

Process Costing

An accounting methodology used for uniform and continuous production, assigning costs based on the process or stages goods go through.

Direct Materials

Raw materials that can be directly attributed to the production of specific goods.

Assembly Department

A section of a manufacturing facility where components are put together to form a finished product.

Manufacturing Overhead

All manufacturing costs other than direct materials and direct labor, not directly attributable to a specific product.