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:

Instrumentality

The perception that a specific behavior will lead to a particular outcome.

Corporate Ladder

A metaphorical depiction of a hierarchy within a corporation, where individuals can ascend through promotions and career advancement.

Instrumentality

The perception of a relationship between performance and the attainment of desired outcomes or rewards.

Expectancy

The state of thinking or hoping that something, especially something pleasant, will happen or be the case.