Question

question 38 (2.5 points)
if a corporation staggers its board it might

a) not allow women to be members of the board.

b) choose an entirely new group of directors each year.

c) refuse to have board of directors meetings.

d) elect one - third of the board members each year for a three - year term.

question 39 (2.5 points)
mark owns 50% of the shares in bob builders inc. the company decides to issue 100 more shares. __________ allow mark to buy additional shares to maintain his proportion of shares that would keep him as a 50% owner.

a) preemptive rights

b) cumulative voting rights

Explanation:

Question 38

To solve this, we analyze each option based on the concept of a staggered board. A staggered board typically involves electing a portion of the board each year (e.g., one - third) for multi - year terms (e.g., three - year terms) to provide continuity. Option a is discriminatory and not related to staggering. Option b is the opposite of staggering (which is about partial, not full, turnover). Option c is not related to the definition of a staggered board. Option d matches the definition of a staggered board where one - third is elected each year for a three - year term.

We need to identify the right that allows a shareholder to buy additional shares to maintain their ownership proportion when new shares are issued. Preemptive rights give existing shareholders the right to purchase new shares before they are offered to others, so they can maintain their ownership percentage. Cumulative voting rights are related to electing directors, not maintaining share proportion on new share issues.

Answer:

d) elect one - third of the board members each year for a three - year term.

Question 39