Question
Jen owns 10 shares of stock in Delta Fashions and wants to win a seat on the board of directors. The firm has a total
Jen owns 10 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 | If cumulative voting applies, Jen can control all of the open seats. |
b | Regardless of the voting procedure, Jen does not own enough shares to assure a seat on the board. |
c | If straight voting applies, Jen is assured a seat on the board. |
d | If cumulative voting applies, Jen is assured one seat on the board. |
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