While Ordinary Decisions Made by Directors Require a ________ Vote

question 80

Multiple Choice

While ordinary decisions made by directors require a ________ vote, more important decisions sometimes require a ________ vote.

• A) Majority; two-thirds
• B) Majority; three-fourths
• C) Two-thirds; three-fourths
• D) One-third; majority
• E) Majority; unanimous

---

Definitions:

Common Stock

An ownership stake in a corporation, represented through a security known as corporate equity ownership.

Retained Earnings

Profits that a company keeps at the end of a fiscal period, after dividends are paid, for reinvestment or debt payment.

Additional Paid-in Capital

The amount of money that shareholders have paid in excess of the par value of the shares; this can occur when shares are initially sold or during subsequent capital injections.

Preferred Stock

A class of ownership in a corporation that typically provides dividend payments before dividends are issued to common stockholders, often with no voting rights.