Asked by Brynn Lauman on Jun 01, 2024
Verified
Explain the power of a minority shareholder in decision-making situations.
Minority Shareholder
A shareholder owning less than half of the total shares, and consequently having less influence over corporate decisions.
Decision-making
The cognitive process of choosing a particular course of action among several alternatives to produce a desired result.
- Comprehend the rights of shareholders, including minority shareholders, and their mechanisms for accountability and protection.
Verified Answer
JA
Justin AmatoJun 07, 2024
Final Answer :
The majority prevails, and an out-voted minority shareholder has no say in the operation of the business.
Learning Objectives
- Comprehend the rights of shareholders, including minority shareholders, and their mechanisms for accountability and protection.