This preview shows page 1. Sign up to view the full content.
Unformatted text preview: . Internet exercise; answers will vary. 10. a. Less valuable
b. More valuable
c. More valuable
d. Less valuable Challenge Questions 1. a. For majority voting, you must own or otherwise control the votes of a simple
majority of the shares outstanding, i.e., onehalf plus one. Here, with 200,000
shares outstanding, you must control the votes of 100,001 shares. b. With cumulative voting, the directors are elected in order of the total number of
votes each receives. With 200,000 shares outstanding and five directors to be
elected, there will be a total of 1,000,000 votes cast. To ensure you can elect at
least one director, you must ensure that someone else can elect at most four
directors. That is, you must have enough votes so that, even if the others sp...
View Full Document