If cumulative voting is permitted:

Q: The new shares which are issued in a rights issue are offered to the existing shareholders at…

A: The company need capital for expansion and growth but the capital is not available easily and…

Q: There are 3 directors seats up for election. If you own 1,000 shares of stock and you can cast 3,000…

A: This the system of voting by shareholders for election of directors.

Q: If there are nine directors to be elected, what is the least number of shares you will need to…

A: Cumulative voting is n approach applied to electing directors of a company. A shareholder usually…

Q: b) The new shares which are issued in a rights issue are offered to the existing shareholders at…

A: Right Shares are those shares which are issued to the existing shareholder of the company instead of…

Q: Does the shareholders share of the corporations annual income increase the shareholders stock basis.

A: When a part of corporation's annual income is shared with the shareholders, it is known as cash…

Q: The preemptive right allows common stockholders to: Group of answer choices vote for the board of…

A: Its purpose is to maintain the proportionate ownership of existing stockholders when new shares are…

Q: True/False. A shareholder of a corporation must always be physically present at an annual…

A: During a shareholders meeting, it is necessary for the quorum set for the shareholders to be…

Q: LTV Corporation grants SARs to key executives. Upon exercise, the SARs entitle executives to receive…

A: Definition:   Stock appreciation rights (SARs): Stock appreciation rights are the compensation plans…

Q: You own 250 shares out of 1,500 shares outstanding. Your co-owner owns the other 1,250 shares. There…

A: Cumulative voting is a method of voting in corporate elections that allows shareholders to…

Q: Before a corporation can issue common shares, it must first issue preferred shares. O True O False

A: Preference shares, also known as preferred stock, constitute a specialized class of ownership in a…

Q: When stockholders assign their right to vote to another party, this is called

A: Proxy is a right available to the stockholders.

Q: Acme Corporation’s articles of incorporation require cumulative voting for the election of its…

A: The formula that can be used for the calculation of the number of directors elected:    X=a×cb+1+1…

Q: Which one of the following dates is the date on which the board of directors votes to pay a…

A: Record Date is the date used as a reference to understand which shareholder will get the dividend…

Q: A corporation can only pay dividends to shareholders from its:   1. Legal Capital   2. Authorized…

A: Lets understand the meaning of retained earnings here. Retained earning is a earning which is…

Q: Issued shares are the number of O authorized shares that have been sold. O shares a corporation is…

A: Shares are those instruments which are issued by the company to raise money from the public. This is…

Q: Which of the following are the two financial requirements that the board of directors must consider…

A: The dividends are paid to outstanding shareholders.

Q: Which is true about corporations?   1. Managers almost always own shares in the corporation they…

A: Common shareholders rights include: Right to access financial records Right to sue for wrongful…