Use This Fact Situation to Answer the Related Questions That

question 24

Multiple Choice

Use this fact situation to answer the related questions that follow. A and B are the shareholders of a private Ontario company and each holds 50 percent of the issued common shares.There is no shareholder agreement.At a general meeting,A and B,who have had a falling out,cannot agree on anything,from the business of the company in the next year to the election of the directors and appointment of the officers.
In this situation,

• A)B must sell his shares to A.
• B)A must sell his shares to B.
• C)the company is effectively locked or deadlocked as to its operation.
• D)the company will simply continue as it had before the meeting.
• E)they will go to court and have the court decide the matter.

Grasp the impact of taxation on the cost of capital and investment decisions.

Understand the role of flotation costs in financing decisions.

Learn the application of different models and approaches to estimate the cost of capital.

Understand the concept of self-awareness and its orientations excluding emotive orientation.

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Definitions:

QuickBooks Data File

Files created by QuickBooks software to store various types of business and financial information, crucial for generating reports, managing invoices, and other accounting tasks.

Uncategorized Expenses

Uncategorized expenses are expenses that have not been assigned to a specific expense category in the accounting records.

Opening Balance Equity

An account used in accounting software to offset the difference between total assets and total liabilities when setting up a new company file.

Sale Of Product

The process of selling a product to a customer, which involves the exchange of a good or service for payment.