The Chip Dip Co

question 34

Multiple Choice

The Chip Dip Co.has 685,500 shares of stock outstanding, grants one vote per share, and uses straight voting.How many shares must you control to guarantee that you will be elected to the firm's board of directors if there are five open seats?

• A)335,167 shares
• B)345,134 shares
• C)345,876 shares
• D)342,751 shares
• E)337,134 shares

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Definitions:

Retained Earnings Statement

A financial report detailing the variations in retained profits over a definite time frame.

Depreciation Expense

The allocation of the cost of tangible assets over their useful lives as an expense to reflect their usage and wear and tear.

Stock Dividend

Additional shares are issued to shareholders by a corporation as a payment, rather than giving out cash.

Par Value Common Stock

The nominal or face value assigned to common stock shares in the corporation's charter, not necessarily reflecting their market value.