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.

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