Final answer:
For control in a Section 351 transaction, generally, more than 80% ownership of voting stock is required. In the context of The Darkroom Windowshade Company, investors 1 and 2 combined do not have the majority needed for control. Ratifying a constitutional amendment requires three-fourths of the states to ratify.
Step-by-step explanation:
Understanding Control in Section 351 Transactions
When we refer to Section 351 in the context of stock and business transactions, it pertains to a provision in the Internal Revenue Code that allows shareholders to defer recognizing a gain or loss when they transfer assets to a corporation in exchange for its stock. The specific question of what percentage of voting stock is required for control purposes in a Section 351 transaction is a matter of business and taxation law. In general, for purposes of control in Section 351 transactions, a shareholder or a group of shareholders needs to own 80% or more of the voting stock. However, this information isn't explicitly provided in the given context, but it's a standard threshold set by U.S. tax law.
In the context of the provided problems about The Darkroom Windowshade Company, the voting power required to change the company's top management depends on the percentage of shares held. To control a decision, a majority is typically required, which would be over 50% of the voting shares. If investors 1 and 2 agree to vote together, they would own 38,000 shares out of 100,000, which equals 38% ownership. This is insufficient to guarantee control as they do not reach the majority threshold.
Furthermore, in another area of law, when amending the U.S. Constitution, the requirement is that three-fourths of the states must ratify an amendment before it becomes law. This emphasizes the variety of voting thresholds depending on the context whether it's corporate control, passing ordinary laws, or amending the constitution.