Restrictions on Share Transfers Are Common and Can Take Almost

question 50

Multiple Choice

Restrictions on share transfers are common and can take almost any form.Such restrictions must be set out in the corporation's constitution and must be noted on the share certificate,otherwise

• A)the shares are not transferable.
• B)the shares have no value.
• C)the restrictions are not binding on a purchaser who has no notice of them.
• D)a preemptive right is created.
• E)any transfer will be ultra vires.

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Definitions:

Performance Levels

Measures of an individual, group, or organization's output compared to a predefined standard or expectation.

Direct Costs

Costs that can be directly attributed to the production of specific goods or services, such as labor and materials.

Factory Rent

Factory rent is the cost associated with leasing or renting a manufacturing facility, which is typically categorized as a fixed expense for the business.

Wages

Payments made to employees, typically on an hourly, daily, or weekly basis, for the labor or services they provide.