Which One of the Following Is Designed to Benefit the Corporation

question 137

Multiple Choice

Which one of the following is designed to benefit the corporation rather than the bondholder?

• A) Positive covenant.
• B) Sinking fund.
• C) Call provision.
• D) Negative covenant.
• E) Call premium.

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Definitions:

Court Piercing

A legal action where a court disregards the corporate entity and holds its owners personally liable for corporate debts or misconduct.

Derivative Action

A lawsuit brought by a corporation shareholder on behalf of the corporation against a third party.

Suing Shareholder

A stockholder who initiates a legal action against a corporation, often for actions that are believed to harm the company or its shareholders.

Reasonable Attorney's Fees

The amount of legal fees deemed fair for the work performed, often recoverable from the opposing party in litigation under certain conditions.