To protect his or her interest a large minority shareholder would prefer which of the following types of shares?
  A. Common stock with no voting rights.
  B. Common stock with cumulative voting rights.
  C. Preferred shares.
  D. Common stock with statutory voting rights.
  Answer:B
  B is corrent. With cumulative voting rights the shareholder gets one vote for each director for each share of stock owned.
  A is incorrect. Without voting rights, the shareholder has no influence on the corporation.
  C is incorrect. Preferred shares generally have no voting rights.
  D is incorrect. With statutory voting rights, a shareholder gets one vote for each share owned.