Jan owns eight hundred of the two thousand issued and outstanding shares of Jackalope Corporation.There are five members of the board of directors,three of whom are up for election at a shareholders' meeting.If each share of stock is entitled to one vote,what is the maximum number of votes that Jan can cast for any one of the candidates for the positions on the board under cumulative voting?

Question

Quizplus · Accepted Answer

Under cumulative voting, shareholders can cast all of their votes for one candidate or distribute them among candidates. The total number of votes a shareholder can cast is determined by multiplying the number of shares owned by the number of seats up for election. In this case, since three seats are up for election, Jan can cast up to:

800 shares x 3 seats = 2400 votes

Therefore, the maximum number of votes that Jan can cast for any one of the candidates is 2400. The options A and B are too low and the options D and E are too high.

Jan Owns Eight Hundred of the Two Thousand Issued and Outstanding