A corporation has 24 shareholders holding 4140 shares. The founder of the company retains 50 % of the companies shares. The remaining shares are equally divided among his 23 grandchildren.

By the company's articles of incorporation, the voting weight for each partner is set by the number of shares they own. The by-laws also state that the quota for any decision affecting the by-laws themselves must be 2760 votes.

a. How many votes does each grandchild hold?

b. What is the voting weight for grandpa?

c. What is the most appropriate characterization for grandpa? ? dummy dictator veto power grumpy old man none of the above

d. What is the appropriate characterization for the grandkids? ? dummy dictator veto power none of the above

Remember for 24 shareholders there are possible coalitions.

To calculate the values requested, we need to follow these steps:

Step 1: Calculate the total number of shares owned by the founder.
Given that the founder retains 50% of the company's shares, we can calculate their total shares by dividing the total shares (4140) by 2:
Founder's shares = 4140 / 2 = 2070 shares

Step 2: Calculate the number of shares held by each grandchild.
Since the remaining shares are equally divided among the 23 grandchildren, we can calculate each grandchild's shares by dividing the remaining shares (4140 - Founder's shares) by the number of grandchildren:
Remaining shares = 4140 - 2070 = 2070 shares
Shares per grandchild = Remaining shares / Number of grandchildren = 2070 / 23 ≈ 90 shares

a. How many votes does each grandchild hold?
To determine the number of votes each grandchild holds, we need to consider that the voting weight is based on the number of shares owned. Therefore, each grandchild will have the same number of votes as the number of shares they possess:
Each grandchild holds 90 votes.

b. What is the voting weight for grandpa?
Since the voting weight is determined by the number of shares, grandpa's voting weight will be equal to the number of shares he owns, which is 2070 shares.

c. What is the most appropriate characterization for grandpa?
Based on the given information, grandpa retains 50% of the company's shares and possesses the highest number of shares. This gives him significant voting power, which can potentially affect decision-making. Therefore, the most appropriate characterization for grandpa would be "dummy dictator veto power."

d. What is the appropriate characterization for the grandkids?
Given that the grandchildren receive an equal distribution of the remaining shares, they do not possess a considerable number of shares individually. As a result, they hold less voting power compared to grandpa and cannot single-handedly block any decision. Therefore, the appropriate characterization for the grandkids would be "none of the above" (neither dummy, dictator, nor veto power).