1. Which of the following statements about common stock voting is/are correct?

I. Majority voting typically prohibits a group of stockholders with a minority viewpoint from having any representation on the board.

II. Cumulative voting allows each share of stock to represent as many votes as there are directors to be elected.

A. Only statement I is correct

B. Only statement II is correct

C. Both statement I and statement II are correct

D. Neither statement I nor statement II is correct.

2. A proxy is

A. a coupon attached to each share of stock and used by the shareholder in casting his vote on current issues.

B. a warrant allowing a stockholder to purchase a specified number of additional shares at a given price.

C. a device for circumventing regular voting procedures.

D. a supplement to a preferred stock