The Purpose of Cumulative Voting Is

question 50

Multiple Choice

The purpose of cumulative voting is

• A) to maintain majority control of the board of directors.
• B) to allow minority stockholders the possibility of a voice on the board of directors.
• C) to obstruct unfriendly mergers and takeover efforts.
• D) to prevent the dilution of common stock through preemptive rights offerings.

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Definitions:

Significance

The measure of the strength and certainty of the results obtained from statistical testing.

Chi-Square Test

A statistical test used to determine if there is a significant difference between expected frequencies and observed frequencies in one or more categories.

Degrees of Freedom

The number of independent pieces of information used in the calculation of a statistic, often impacting its distribution.

Contingency Table

A type of table used in statistics to show the frequency distribution of variables, helps in analyzing the relationship between two or more categorical variables.