Question

The corporate charter of Pharaoh Co. authorized the issuance of 6M, $1 par common shares. During 2018, its first year of operations Pharaoh had the following transactions:

a) Issued 2M shares at $15
b) Retired 1M shares at $18
c) Sold 1M shares at $20
d) Sold 2M shares at $18

Answer 1

The Pharaoh Co. question is about corporate finance and stock transactions, while the Darkroom Window shade Company scenario involves shareholder voting power and corporate governance. The latter requires understanding the distribution of voting rights and majority control to determine the influence of certain investors on management decisions.

Step-by-step explanation:

The question regarding Pharaoh Co.'s corporate charter and stock transactions falls under the subject of Business, specifically corporate finance and accounting. It deals with the issuance, retirement, and sale of company shares and touches on concepts such as stock par value, market value, and capital raised.

For the Darkroom Window shade Company case, the focus is on shareholder voting power and corporate governance, which are key topics in corporate law and management. When discussing the minimum number of investors needed to change the top management at the Darkroom Window shade Company, it is important to calculate the percentage of ownership each shareholder has.

Since a majority is typically required to effect such changes, the combined voting power of investors 1 and 2 needs to exceed 50%. Calculation reveals that these two investors together have 38% of the shares, which is insufficient to guarantee that they can always control the company's decisions.