Final answer:
The minimum number of investors it would take to change the company's top management is determined by a majority vote, exceeding 50,000 shares. Investors 1 and 2 together have 38,000 shares and would need at least one more investor with a significant number of shares to ensure control.
Step-by-step explanation:
The student is asking about the voting power of shareholders in corporate decisions. Specifically, the question comes down to how many investors it would take to change the company's top management given the number of shares each investor or group of investors holds in The Darkroom Windowshade Company. We're also asked if a coalition between Investor 1 and Investor 2 would be sufficient for them to always get their way in the company.
First, to change the company's management, shareholders must hold over 50% of the voting shares. Here we have:
- Investor 1: 20,000 shares
- Investor 2: 18,000 shares
- Investor 3: 15,000 shares
- Investor 4: 10,000 shares
- Investor 5: 7,000 shares
- Investors 6 through 11 (6 total): 5,000 shares each
Investor 1 and 2 together have 38,000 shares. They need over 50,000 for a majority, so they cannot be certain of always getting their way. The minimum number of investors needed would require a combination of shareholders holding more than 50,000 shares. Combining Investor 1 and 2 with any of the others (Investor 3 or Investor 4, for instance) would suffice to change management.