Question

What is the purpose of cumulative voting? Are there any disadvantages to management? Also, common stockholders...

What is the purpose of cumulative voting? Are there any disadvantages to management? Also, common stockholders are the owners of the company, so why do they have the last claim on assets?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
. What is a debenture? . Common stock has voting rights. What are common stockholders voting...
. What is a debenture? . Common stock has voting rights. What are common stockholders voting for . What are the risks when owning bonds? . What is a defensive stock?
Which of the following statements about common stock is false? Stockholders exercise control over the company...
Which of the following statements about common stock is false? Stockholders exercise control over the company by voting for board members. Common stockholders are the owners of for-profit corporations. The preemptive right gives current stockholders the right to purchase any new shares issued by the company. In the event of bankruptcy and liquidation, shareholders often receive nothing. The claim of shareholders on the cash flows of the firm is limited to the dividends that they receive—i.e., they have no claim...
What do Amazon’s bondholders and stockholders have in common?               Group of answer choices All of...
What do Amazon’s bondholders and stockholders have in common?               Group of answer choices All of these are true. Two of these are true, Both are stakeholders in the company. Both hold claims on Amazon’s profits and have the right to receive distributions of those profits. Both have voting rights and are represented by Amazon’s board of directors. Both hold claims on the Amazon’s income and assets.
In your own words, what does it mean that common stockholders have a residual claim on...
In your own words, what does it mean that common stockholders have a residual claim on the assets of the corporation?
What do you think the advantages of investing in mutual funds? Are there any disadvantages? It...
What do you think the advantages of investing in mutual funds? Are there any disadvantages? It is estimated that by the year 2014, household financial resources invested in mutual funds had reached more than 15 trillion dollars. Why do you think they’ve become so popular? Since professional management and diversification are characteristics of mutual funds, must investors still evaluate a mutual fund? Why or why not?
Which of the following is a difference between common stock and bonds? Select one: a. Dividend...
Which of the following is a difference between common stock and bonds? Select one: a. Dividend paid to stockholders is tax-deductible but interest paid to bondholders are not. b. Bondholders have a senior claim on assets and income relative to stockholders. c. Stocks have a stated maturity but bonds do not. d. Bondholders have a voice in management; common stockholders do not.
Hepner Corporation has the following stockholders’ equity accounts: Preferred stock (7% cumulative dividend) $ 580,000 Common...
Hepner Corporation has the following stockholders’ equity accounts: Preferred stock (7% cumulative dividend) $ 580,000 Common stock 830,000 Additional paid-in capital 380,000 Retained earnings 1,030,000 The preferred stock is participating. Wasatch Corporation buys 70 percent of this common stock for $1,680,000 and 60 percent of the preferred stock for $660,000. The acquisition-date fair value of the noncontrolling interest in the common shares was $720,000 and was $440,000 for the preferred shares. All of the subsidiary’s assets and liabilities are viewed...
Hepner Corporation has the following stockholders’ equity accounts: Preferred stock (5% cumulative dividend) $ 680,000 Common...
Hepner Corporation has the following stockholders’ equity accounts: Preferred stock (5% cumulative dividend) $ 680,000 Common stock 930,000 Additional paid-in capital 480,000 Retained earnings 1,130,000 The preferred stock is participating. Wasatch Corporation buys 70 percent of this common stock for $1,750,000 and 60 percent of the preferred stock for $810,000. The acquisition-date fair value of the noncontrolling interest in the common shares was $750,000 and was $540,000 for the preferred shares. All of the subsidiary’s assets and liabilities are viewed...
Hepner Corporation has the following stockholders’ equity accounts: Preferred stock (6% cumulative dividend) $ 750,000 Common...
Hepner Corporation has the following stockholders’ equity accounts: Preferred stock (6% cumulative dividend) $ 750,000 Common stock 1,000,000 Additional paid-in capital 550,000 Retained earnings 1,200,000 The preferred stock is participating. Wasatch Corporation buys 80 percent of this common stock for $1,880,000 and 70 percent of the preferred stock for $910,000. The acquisition-date fair value of the noncontrolling interest in the common shares was $470,000 and was $390,000 for the preferred shares. All of the subsidiary’s assets and liabilities are viewed...
Hepner Corporation has the following stockholders’ equity accounts: Preferred stock (8% cumulative dividend) $ 660,000 Common...
Hepner Corporation has the following stockholders’ equity accounts: Preferred stock (8% cumulative dividend) $ 660,000 Common stock 910,000 Additional paid-in capital 460,000 Retained earnings 1,110,000 The preferred stock is participating. Wasatch Corporation buys 70 percent of this common stock for $1,820,000 and 60 percent of the preferred stock for $810,000. The acquisition-date fair value of the noncontrolling interest in the common shares was $780,000 and was $540,000 for the preferred shares. All of the subsidiary’s assets and liabilities are viewed...