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.

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Definitions:

Sales Forecasts

The process of estimating future sales. It helps businesses make informed decisions regarding inventory management, workforce needs, and financial planning.

Historical Trends

Analysis of past data to identify patterns or changes over time that may influence future outcomes or behaviors.

Economic Forecasts

Predictions about future economic conditions, including growth rates, inflation, and employment, based on current and historical data.

FA/Sales Ratio

Fixed Assets to Sales Ratio; measures the efficiency of a firm's use of its fixed assets to generate sales.