To Avoid Sharing Control with Someone They Do Not Know

question 108

Multiple Choice

To avoid sharing control with someone they do not know or like, it would be most effective for the shareholders of a close corporation to

• 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.

---

Definitions:

Stereotyping

Erroneous assumptions that all members of a group share the same traits or characteristics.

Attraction-Similarity Hypothesis

A theory suggesting that people are attracted to others who are similar to themselves in terms of attitudes, values, and interests.

Altruism

The practice of selflessly caring for the welfare of others, often at a cost to oneself.

Fundamental Attribution Error

The assumption that others act predominantly on the basis of their dispositions, even when there is evidence suggesting the importance of their situations.