Jacob Is a Minority Shareholder in a Closely Held Corporation

question 43

Multiple Choice

Jacob is a minority shareholder in a closely held corporation. Recently he was dismissed from his marketing management position and now the board of directors is stopping him from transferring his stock to a cousin. He has

• A) legal claims against the board of directors.
• B) lost his rights as a minority stock holder.
• C) been locked- in and frozen out.
• D) been locked- in.
• E) been frozen out.

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Definitions:

Ratio Analysis

A quantitative analysis of information contained in a company’s financial statements, used to evaluate the overall financial condition and performance of a business.

Forecasting Method

A set of techniques used to predict future events or trends, such as market demand or sales, based on historical data and other information.

Operational Indices

Indicators or metrics used to measure and evaluate the performance and efficiency of an organization's operations.

Nominal Group Technique

A structured method for group brainstorming that encourages contributions from everyone and ranks ideas according to collective agreement.