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:

Monetary Policy

A strategy employed by a nation's central bank to control the money supply, often targeting inflation or interest rates to ensure economic stability.

Economic Policy

The actions taken by a government to influence its economy, including fiscal policy (taxing and spending practices) and monetary policy (control of the money supply and interest rates).

Progressive Taxes

A tax system in which the rate of taxation increases as the taxable amount increases, thereby placing a higher financial burden on individuals or entities with higher incomes.

Regressive Taxes

Taxes that take a larger percentage of income from low-income earners than from high-income earners, inversely related to the taxpayer's ability to pay.