The Severability Clause Provides That If Any Portion of an Agreement

question 15

True/False

The severability clause provides that if any portion of an agreement is determined to be unen-
forceable, the other portions of the agreement continue to be effective.

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Definitions:

Common Stock

Equity ownership in a corporation, representing a claim on its earnings and assets.

Outstanding

Refers to shares that are currently owned by investors, including restricted shares owned by the company's officers and insiders.

Authorized

Authorized refers to the maximum number of shares a corporation is legally permitted to issue, as specified in its charter.

Common Stockholders

Individuals or entities that own shares of a company's common stock, giving them rights to vote on company matters and receive dividends, subject to the company's performance and dividend policy.