Which of the Following Statements Reflects the Transferability of Ownership

question 60

Multiple Choice

Which of the following statements reflects the transferability of ownership rights in a corporation?

• A) If a stockholder decides to transfer ownership he must transfer all of his shares.
• B) A stockholder may dispose of part or all of his shares.
• C) A stockholder must obtain permission from the board of directors before selling shares.
• D) A stockholder must obtain permission from at least three other stockholders before selling shares.

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Definitions:

Normal Balance

The side (debit or credit) of an account that is typically increased. For assets and expenses, it's debit; for liabilities, equity, and income, it's credit.

Account

A record that keeps track of all financial transactions related to an asset, liability, equity, revenue, or expense.

Increases

The action or process of becoming larger in quantity, size, amount, or degree in a financial or numerical context.

Asset Account

An account that represents a resource owned or controlled by a business, expected to provide future economic benefits.