Why Are Restraining Orders Dangerous for a Startup

question 19

Multiple Choice

Why are restraining orders dangerous for a startup?

• A)They paralyze the company until the court battle is resolved
• B)They forbid the company to go public
• C)It's a first step of bankruptcy
• D)The board of directors has to be reelected, which is a very long process
• E)They violate the rights of minority shareholders

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Definitions:

Maker

The person or entity that creates or produces something, often referred to in contexts such as art, manufacturing, or finance.

Notes

Short-term financial instruments, typically in the form of a debt or loan, that require repayment of the principal and interest by the issuer.

Drafts

Preliminary versions of documents, or negotiable instruments drawn by one party (drawer) ordering another party (drawee) to pay a specified sum to a third party.

Indorsed in Blank

A signature on a negotiable instrument like a check, making it payable to whoever holds the instrument, without naming a specific endorsee.