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

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.