All of Sphere Corporation's Single Class of Stock Is Owned

question 96

Multiple Choice

All of Sphere Corporation's single class of stock is owned by four unrelated individuals in the following manner: Zack 27%, Xu 24.33%, Yvonne 24.33%, and Win 24.33%. Some of Zack's stock holdings are redeemed by Sphere Corporation, resulting in Zack's interest being reduced to 22.27%. Xu, Yvonne, and Win owned equally the remaining 77.73% of the Sphere stock. How should the redemption of Zack's stock be treated by Zack?

• A)dividend income
• B)sale transaction
• C)return of capital
• D)some other treatment

---

Definitions:

Passive-Aggressive

A behavior pattern where individuals express negative feelings indirectly rather than directly addressing them.

Emotional Intelligence

The capacity to comprehend, utilize, and control one's emotions constructively to mitigate stress, communicate efficiently, sympathize with others, surmount obstacles, and resolve conflicts.

Social Awareness

The ability to understand and empathize with others' feelings and perspectives within social contexts.

Workplace Politics

Refers to the power dynamics, relationships, and strategic interactions among individuals within a work environment.