SUSTAINABLE-INVESTING practice question 2 of 35
The mechanism of dual-class shares most likely favors:
Full set: 802 questionsCorrect Answer:
C. The founders of a company
Explanation
Dual-class shares typically favor the founders of a company by giving them greater voting power compared to other shareholders, allowing them to retain control over decision-making even if their economic ownership of the company is diluted. This mechanism is often used to protect the founders' vision and strategy for the company.ESG Reference: Chapter 5, Page 241 - Governance Factors in the ESG textbook.
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