Which of the Following Requirements Must Be Met for a Redemption

question 34

Multiple Choice

Which of the following requirements must be met for a redemption to be treated as substantially disproportionate?

• A)The shareholder must own less than 50% of the outstanding stock (in terms of voting power)after the redemption.
• B)After the redemption, the shareholder must own less than 80% of his percentage ownership of voting stock prior to the redemption.
• C)After the redemption, the shareholder must own less than 80% of his percentage ownership of common stock (voting and nonvoting)prior to the redemption.
• D)All of the above must be met.

---

Definitions:

Diverse Populations

Represents groups of people with varying characteristics such as cultural, ethnic, racial, socioeconomic, and linguistic backgrounds.

Post-Traumatic Stress Disorder

A mental health condition triggered by experiencing or witnessing a terrifying event, characterized by severe anxiety, flashbacks, and uncontrollable thoughts.

Cognitive Distortion

Unrealistic or biased ways of thinking that are often negative and can contribute to emotional distress or behavioral issues.

Perceiving Self

The aspect of an individual's consciousness that involves self-awareness and the perception of oneself.