1. A firm is filling five vacant board seats using the cumulative voting method. There are 2,000,000 shares outstanding. You own 300,000 shares of this company's stock and you wish to elect yourself to the board. Can you guarantee membership on the company's board?

A. Yes, your share ownership is enough to guarantee your election to the board.

B. No, because in cumulative voting, you need 1,000,001 shares to guarantee election to the board.

C. Yes, because you own majority of the shares outstanding.

D. No, you don't own enough shares to guarantee your election.

2. It will cost $23,000 to acquire an ice cream cart. Cart sales are expected to be $8,600 a year for four years. After the four years, the cart is expected to be worthless as the expected life of the refrigeration unit is only four years. What is the payback period?

A. 1.82 years

B. 1.67 years

C. 2.67 years

D. 2.15 years