A Basic Legal Principle Involving Shareholders Is That

question 54

Multiple Choice

A basic legal principle involving shareholders is that:

• A)an ownership interest in a company does not confer a legal right to manage the business.
• B)the board of directors cannot elect the principal owner as CEO.
• C)all dividends are non-taxable.
• D)shareholders cannot buy new shares until it is offered for public sale.

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Definitions:

Primary Types

The fundamental categories or main forms within a broader classification.

Patents

Legal documents granting an inventor exclusive rights to produce, use, and sell an invention for a certain period of time.

OSHA Workplace Standards

Regulations and guidelines issued by the Occupational Safety and Health Administration to ensure safe and healthful working conditions for working men and women.

Maturity

The stage of the organization when the business is considered well established.