Jen Owns 30 Shares of Stock in Delta Fashions and Wants

question 30

Multiple Choice

Jen owns 30 shares of stock in Delta Fashions and wants to win a seat on the board of directors. The firm has a total of 100 shares of stock outstanding. Each share receives one vote. Presently, the company is voting to elect three new directors. Which one of the following statements must be true given this information?

• A) Regardless of the voting procedure, Jen does not own enough shares to gain a seat on the board.
• B) If straight voting applies, Jen is assured a seat on the board.
• C) If straight voting applies, Jen can control all of the open seats.
• D) If cumulative voting applies, Jen is assured one seat on the board.
• E) If cumulative voting applies, Jen can control all of the open seats.

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Definitions:

State Implementation Plan

A document prepared by states in which the emissions to the air from individual sources are limited legally so that the area will meet the national ambient air quality standards.

Clean Air Act

A comprehensive federal law in the United States that regulates air emissions from stationary and mobile sources to control air pollution.

National Ambient Air Quality Standards

Federally established air pollution standards designed to protect the public health and welfare.

Permit System

A regulatory system that requires individuals or entities to obtain permission, usually from a government authority, before undertaking certain activities.