There are seven seats on the board of directors of Furniture Unlimited up for election.The firm has 246,500 shares of stock outstanding and uses straight voting.Each share is granted one vote for each open seat.How many shares must you control if you want to guarantee your election to the board assuming no one else votes for you?

Question

Quizplus · Accepted Answer

To guarantee election to the board, you need to win more than half of the votes. There are 7 seats available, so you need to win 4 seats. This means you need to have at least 4 x 246,500 = 986,000 votes. Since each share equals one vote, you need to own at least 986,000 shares to guarantee your election. The closest option is B, 123,251 shares.

There Are Seven Seats on the Board of Directors of Furniture