Which of the Following Is NOT a Distinguishing Feature of Closely

question 16

Multiple Choice

Which of the following is NOT a distinguishing feature of closely held corporations?

• A)The number of shareholders is restricted.
• B)The directors of the company are prohibited from holding more than 60 percent of the outstanding shares.
• C)The number of required shareholders can be as small as one.
• D)Any invitation to the public to buy shares is prohibited.
• E)The right to transfer shares must be restricted in some manner.

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Definitions:

HRM Practices

Human Resource Management practices involve recruitment, selection, training, appraisal, compensation, and development of employees to enhance organizational performance.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior position compared to its competitors.

Growth Strategy

A plan of action designed to increase the size, revenue, or market share of a business.

Organization's Culture

The shared values, beliefs, and practices that shape the social and psychological environment of a business organization.