What Is a Basic Legal Principle Involving Shareholders

question 39

Multiple Choice

What is a basic legal principle involving shareholders?

• A) An ownership interest in a corporation does not confer a legal right to manage the firm.
• B) The board of directors cannot elect the principal owner as president.
• C) All dividends are nontaxable.
• D) Shareholders cannot buy new shares until they are offered for public sale.

---

Definitions:

License Plates

Metal or plastic plates attached to motor vehicles for official identification purposes, displaying a unique sequence of letters and numbers.

Broca's Area

An area of the frontal lobe in the left hemisphere of the brain, associated with the production of language.

Pronouncing Words

Involves the action of making the sound of a word in a correct or particular way.

Stroke

A medical condition where poor blood flow to the brain results in cell death, causing loss of function in parts of the body.