Shareholders May Enter into an Agreement That States That If

question 45

True/False

Shareholders may enter into an agreement that states that if a shareholder wants to sell his stock he must sell it to the corporation.

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Definitions:

Sole Proprietor

is a business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Corporation

A legal entity that is separate from its owners, providing limited liability, and is able to own property, incur debt, sue and be sued.

General Partner

An owner of a partnership who is responsible for its operations and is liable for its debts without limitation.

Shareholder

An individual or organization that owns at least one share of a company's stock, making them a part owner of that company.