Question

the common stock account represents 112,000 shares of no par value common stock issued and outstanding. the corporation has 600,000 shares authorized?

Answer 1

At least three investors, Investors 1, 2, and 3, who have a combined total of more than 50,000 shares, are needed to vote for a management change at the Darkroom Windowshade Company. Investors 1 and 2 together do not hold a majority and cannot control the company's decisions on their own.

Step-by-step explanation:

The question pertains to the concept of corporate stock ownership and voting rights in a company. To change the company's top management, a majority vote is needed. For the Darkroom Windowshade Company, there are 100,000 shares outstanding. The minimum number of investors needed to form a majority would be those who collectively have more than 50,000 shares. Investor 1 with 20,000 shares and Investor 2 with 18,000 shares together have 38,000 shares. Adding Investor 3 with 15,000 shares brings the total to 53,000 shares, thus achieving a majority. Therefore, at a minimum, these three investors could vote to change top management. However, investors 1 and 2, even when voting together, do not possess a majority (50% + 1 share) and, therefore, cannot be certain of always getting their way in how the company is run.