To Prevent a Majority Shareholder from Dominating the Management and Operation

question 42

Multiple Choice

To prevent a majority shareholder from dominating the management and operation of a close corporation, the firm should

• A)require more than a majority of directors approve any board action.
• B)restrict the transferability of shares to outside persons.
• C)reorganize into a sole proprietorship or partnership.
• D)hold special shareholders' or directors' meetings on an annual basis.

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Definitions:

Main Connective

The main connective in a logical expression is the operator that determines the overall truth value of the statement.

Atomic Components

These are the fundamental parts or elements of a larger system, often used in reference to physics or chemistry, but also applicable in various contexts.

Self-Contradictory

A declaration or claim that contradicts itself or lacks logical consistency.

Conjunction

In logic and grammar, a connective word or phrase that joins together sentences, phrases, concepts, or elements of the same logical type.