You Have Been Asked by Two Fellow Graduates to Join

question 74

Multiple Choice

You have been asked by two fellow graduates to join them in incorporating a closely held corporation that would commence a consulting business. One was in your class, so you know him quite well, but the other is graduating from a different school. You have been discussing the law to review the protection it gives you. Read each of the following statements separately and indicate which is true.

• A) As a shareholder, you will have the right to vote for the officers of the corporation.
• B) A shareholder's agreement allows shareholders and not officers to manage the corporation.
• C) If you each take one-third of the first allotment of the shares, you will necessarily be a minority shareholder, and have no voting rights in electing the directors of the corporation.
• D) If you have pre-emptive rights and the directors decide to issue a new allotment of shares, the corporation must offer you a portion of the new issue to allow you to keep your proportional share of the corporation.
• E) If you were voted out as a director by the others, who could show that it was in the best interests of the corporation, you could always sell your shares to any interested buyer without interference from the other directors.

Understand global population trends and their implications for energy and resource consumption.

Recognize the concept of British thermal units (BTUs) and their relevance to energy discussions.

Identify the environmental impact of human activities measured in terms of waste generation.

Grasp the dynamics of supply and demand in the context of productive resources.

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Definitions:

Alternative Payees

Parties other than the original recipient designated to receive payments or benefits in specific arrangements.

Payable

Refers to an amount of money that is owed and should be paid, often within a specific period of time.

Instrument

Refers to a legal document formalizing an agreement or right, often used in financial transactions.

Certified Check

A check that is accepted by the bank from which the funds are drawn.