True or False: In some cases, individuals who start a business have special voti

Question

True or False: In some cases, individuals who start a business have special voting rights that help them exercise more control over the firm. They own a special class of stock called founders' shares. Consider this case: Mario Hathaway is a majority shareholder of Wizard Inc. He owns Class A shares, with larger-than-proportionate voting rights, of Wizard Inc. Based on this example, which of the following statements is true? Classified shares are issued to provide super-voting rights to a certain class of investors. Classified shares are not issued with the purpose of providing super-voting rights to a certain class of investors.

Explanation / Answer

1) TRUE Founder shares sometimes carry special voting rights 2) TRUE Based on the given example , Classified shares are issued to provide super voting rights to a certain class of investors

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.