Many Companies Issue Shares with Differential Voting Rights, Deviating from the One-Share

question 55

Multiple Choice

Many companies issue shares with differential voting rights, deviating from the one-share one-vote principle.

• A)By accumulating superior voting shares, investors can acquire cash flow rights exceeding control rights.
• B)The price of the voting shares is usually twice the price of the voting shares.
• C)By accumulating superior voting shares, investors can acquire control rights exceeding cash flow rights.
• D)None of the above

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Definitions:

Substitutable Resources

Resources that can replace each other in production or consumption, such that the increase in price of one leads to an increase in demand for the other.

Productivity

The measure of efficiency in producing goods and services, typically quantified as the ratio of output to input in the production process.

Lumber

Processed wood used for building and construction.

Equilibrium Quantity

The quantity bought and sold at the equilibrium price.