Consider a Firm That Has Dual-Class Shares with 250 Million

question 10

Multiple Choice

Consider a firm that has dual-class shares with 250 million Class A shares (having 1 vote each) and 75 million nonlisted Class B shares having 10 votes each.The shares are otherwise identical.If one requires 51 percent of the votes to control the firm, what number of Class B shares must one control?

• A)37.5 million
• B)51 million
• C)125 million
• D)162.5 million

---

Definitions:

Corporate Allegiance

Loyalty and commitment of employees to their organization, often manifesting in higher productivity and morale.

Organizational Empowerment

Describes the process and practices that allow members within an organization to gain the authority, resources, and confidence to take initiative and make decisions to achieve organizational goals.

Top-down Approach

A management strategy where decisions and policies are initiated at the highest level of hierarchy and subsequently communicated down to lower-level employees.

Career Anchors

The fundamental values and goals that guide an individual's career choices and paths.