Axolotl, Inc

question 73

Essay

Axolotl, Inc. decided to double the number of independent network file servers, each server being capable of running its entire internal corporate network. Bob suggested that "doubling the number of file servers in our corporate network will just double the chances of failure." Is Bob right? Has the company made an error?

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Definitions:

Preferred Shareholders

Investors who own preferred shares in a company, giving them priority over common shareholders in the distribution of dividends and assets.

Dividend Distributions

Payments made by a corporation to its shareholders, usually derived from the company's earnings.

Cumulative Voting

A voting system that allows shareholders to concentrate their votes on a single candidate for the board of directors.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a company.