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July 1 Two individuals each invested $50,000 in the corporation. Each investor was issued 5,000 shares of common stock.

User Dzl
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1 Answer

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Final answer:

To change the company's top management through a vote, a majority of the shareholders need to agree. The number of investors required depends on the number of shares they hold. Even if investors 1 and 2 agree to vote together, they cannot be certain of always getting their way because their combined shares are not enough for a majority vote.

Step-by-step explanation:

To change the company's top management through a vote, a majority of the shareholders need to agree. The minimum number of investors it would take to vote to change the management is determined by the number of shares they hold. To calculate this, we need to find the total number of shares held by all investors and determine what portion of the total is needed for a majority vote.

In this case, the total number of shares is 100,000. To have a majority vote, at least 50,001 shares need to vote in favor of the change.

Regarding investors 1 and 2, even if they agree to vote together, they cannot be certain of always getting their way in how the company will be run. This is because their combined shares (20,000 + 18,000 = 38,000) are not enough to make up the majority required for a vote.

User TheRealEmu
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