25- The voting process which may allow minority shareholders (those with relatively smaller percentage ownership) an...
25- The voting process which may allow minority shareholders (those with relatively smaller percentage ownership) an opportunity to elect at least one of a firm’s directors is known as:
Select one:
a. restricted voting
b. cumulative voting
c. straight voting
d. non-cumulative voting
e. minority voting privilege
Homework Answers
In a cumulative voting, each share is allowed one vote. This benefits minority shareholders in a way that, they have option to focus all their voting right on a single candidate. In this way, they may have power to influence a change in their direction.
So, the correct answer is option B.
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