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Katarina [22]
3 years ago
11

In a corporation, the shareholders receive 1 vote for each share of stock they hold, which is usually based on the amount of mon

ey the invested in the company. Suppose a small corporation has two people who invested $30,000 each, two people who invested $20,000 each, and one person who invested $10,000. If they receive one share of stock for each $1000 invested, and any decisions require a majority vote, set up a weighted voting system to represent this corporation’s shareholder votes.
Business
1 answer:
Umnica [9.8K]3 years ago
6 0

Answer:

shareholders A and B will each have 30 votes (each invested $30,000)

shareholders C and D will each have 20 votes (each invested $20,000)

shareholder E will have 10 votes (only invested $10,000)

total number of possible votes = (30 x 2) + (20 x 2) + 10 = 110 votes

any decision must be approved by more than 50% of the votes, but since the votes are bundled in tens, 60 votes are needed.

Stockholders                                     number of    

<u>A        B         C         D          E   </u>       <u> positive votes</u>           <u>  win</u>

yes   no        no       no         no               30                           no

yes   yes       no       no        no                60                           yes

yes    no        yes     no        no                50                            no

yes    no         no      yes      no                50                            no

yes    no        no       no        yes              40                            no

yes    yes      yes      no        no                80                           yes

yes     yes     no       yes       no                80                           yes

yes     yes     no       no         yes              70                           yes

yes     yes    yes      yes        no               100                          yes

yes     yes    yes      no         yes               90                          yes

yes     yes    yes      yes        yes              110                          yes

no      yes     no       no          no               30                           no

no      yes     yes      no          no              50                            no

no      yes     no        yes        no              50                            no

no      yes     no        no         yes             40                            no

no      yes    yes       yes         no              70                           yes

no      yes    yes        no          yes            60                          yes

no      yes     no         yes        yes            60                          yes

no      yes     yes        yes        yes            80                          yes  

all other combinations result in negative outcome (less than 60)  

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