Suppose Marcella Is Incorporating a New Business Entity and Must

question 30

Multiple Choice

Suppose Marcella is incorporating a new business entity and must consider the matters relating to shares.Which of the following is a valid question that Marcella must answer?

• A) How many classes of shares will affect the control of the issuance?
• B) How many classes of shares should be issued,and what are the rights and privileges for each?
• C) Who will have the right to manage or control the issuance?
• D) Who will receive the rights and privileges that attach to stakeholders?

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Definitions:

Negligent Conduct

A failure to act with the level of care that someone of ordinary prudence would have exercised under the same circumstances.

Causation

A principle in law and philosophy where a cause is linked to an effect; essential for establishing liability in tort cases.

Intervening Cause

An event that occurs after the defendant's act and contributes to a harm, potentially relieving the defendant of liability.

Superseding Cause

An unforeseeable event that interrupts the chain of causation and becomes the primary cause of an incident, relieving the defendant of liability.