Which of the Following Is Not a Distinguishing Feature of Closely

question 53

Multiple Choice

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

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

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Definitions:

Article 2

A section of the Uniform Commercial Code that governs sales of goods in the United States.

Firm Offer

in commercial law refers to a binding proposal made by a seller to sell goods or services at a specified price, which cannot be withdrawn for a certain period.

Merchant

An individual or company engaged in the business of selling goods or services.

Window Casings

Architectural elements surrounding a window to frame it, providing aesthetic and functional benefits such as support and insulation.