Question

Unit Test Attempt 3 of 2 SECTION 1 OF 1 QUESTION 3 Mr. Smith, Ms. White, Mr. Jones, and Mrs. Reyes are all partners in a new bank. Based on the funds that each partner contributed to creating the bank, the following ownership percentages were calculated, respectively: 8%, 31%, 23%, 10%. What is a potential issue with the partner contributions?

a) Mr. Smith must contribute an additional 2% to bring his ownership up to the minimum of 10%.
b) Ms. White plus Mr. Jones results in over 50% ownership and more than 3 shareholders must make up majority ownership.
c) Ms. White is out of compliance at 31%.
d) There is no issue as no one shareholder has majority ownership of the bank.

Answer 1

The potential issue with partner contributions in the bank cannot be definitively identified without more information, as the provided percentages don't indicate an immediate problem. Shareholding power and majority ownership are important considerations for influencing company decisions. Shareholders choose company managers usually by voting in proportion to their shares at shareholder meetings.

Step-by-step explanation:

The question at hand is identifying a potential issue with the partner contributions in terms of ownership percentages in a new bank. The partners Mr. Smith, Ms. White, Mr. Jones, and Mrs. Reyes have ownership percentages of 8%, 31%, 23%, and 10%, respectively. If we total these percentages, we get 72%, which indicates that there might be other owners not listed as we are missing 28% of ownership. However, from the given options, without additional rules about minimum ownership or shareholder majority requirements, we do not have enough information to definitively identify a problem.

When addressing the shareholding power within a company, majority ownership is one factor that can lead to potential issues if it is concentrated in the hands of few. For a company like the Darkroom Windowshade Company, to avoid any one shareholder or a coalition of shareholders always getting their way in the company's decisions, it is important that no single shareholder or small group controls the majority of shares. If shareholders 1 and 2 vote together, they hold 20,000 + 18,000 = 38,000 shares. As this is less than half of the outstanding 100,000 shares, they cannot be certain of always getting their way and would need support from additional shareholders.

Lastly, shareholders typically are part of the decision-making process to choose company managers, often through votes at shareholder meetings. The number of votes a shareholder has usually correlates with the number of shares they own.