Suppose Marcella Is Incorporating a New Business Entity and Must

question 40

Multiple Choice

Suppose Marcella is incorporating a new business entity and must consider the matters relating to shares.Which of the following is a valid question that must be answered by Marcella?

• A) How many classes of shares will affect the control of the issuance?
• B) How many classes of shares and what rights and privileges for each?
• C) Who will have the right to manage or control the issuance?
• D) Who will receive the rights and privileges that attach to stakeholders?

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Definitions:

Judicial Decisions

Rulings or conclusions by courts concerning laws, constitutions, or cases that serve as precedents for subsequent legal decisions.

Law of Contracts

The branch of law dealing with the creation and enforcement of agreements between parties, outlining the obligations that each party must fulfill.

Contractual Capacity

Contractual capacity refers to the legal ability of a party to enter into a contract, generally requiring them to be of sound mind and of legal age.

Binding Agreement

A contract or deal between two or more parties that is legally enforceable in a court of law.