Question

which of the following statements is false? question 11 options: for the rules of association, shares of a specified class are not considered in assessing whether the 25% cross-ownership condition is met. for the rules of association, options and rights to acquire additional voting shares are not considered in assessing whether an individual controls a corporation. for the rules of association, a person who owns shares in more than one corporation is deemed to be related to itself, himself, or herself. for the rules of association, both parents of a minor child are deemed to own the shares of his or her minor child. question 12 (1 point)

Answer 1

To change the Darkroom Windowshade Company's top management, a majority vote of over 50,000 shares is needed. Investors 1 and 2 together do not have a majority and thus require additional support to ensure control.

Step-by-step explanation:

For Problem 36 regarding the Darkroom Windowshade Company, the key to understanding voting power lies in the concept of majority control or the number of shares required to have a majority vote in company decisions. To change the company's top management, more than 50% of the vote is needed, which equals to more than 50,000 shares for this company. Investor 1 and Investor 2 hold 20,000 and 18,000 shares respectively. If they combine their votes, they have 38,000 shares together, which is not a majority. Therefore, they would need additional investors to vote with them to reach a majority. Consequently, they cannot be certain of always getting their way in how the company is run without the support from additional shareholders.