Question

Cerulean Corporation has two equal shareholders, Marco and Avery. Marco acquired his Cerulean stock three years ago by transferring property worth $700,000. Avery acquired 70 shares in Cerulean Corporation two years ago by transferring property worth $660,000.

a) True
b) False

Answer 1

To change top management at the Darkroom Windowshade Company, more than 50% of the shares must agree. Investors 1 and 2, with 38,000 shares combined, do not have a majority and need more support to ensure control.

Step-by-step explanation:

The Darkroom Windowshade Company has 100,000 shares outstanding, and to change the company's top management, more than 50% of the voting shares are required to agree on the decision. Adding up the shares of the largest shareholders, investor 1 with 20,000 shares and investor 2 with 18,000 shares, gives us 38,000 shares. This combination is not enough to guarantee always getting their way, as they only control 38% of the voting power. To achieve a majority, they would need at least 50,001 shares. Therefore, they would need the support of at least investor 3, who has 15,000 shares, or a combination of other investors to surpass the majority threshold.