All of a Certain Corporation's Small Number of Shareholders Agree

question 84

Multiple Choice

All of a certain corporation's small number of shareholders agree that the firm can operate without directors, bylaws, shareholder meetings, stock certificates, and formal records of shareholders' decisions. This firm is most likely

• A)a close corporation.
• B)a corporation by estoppel.
• C)a de facto corporation.
• D)a de jure corporation.

---

Definitions:

Fair Market Value

The price at which an asset would exchange between a willing buyer and a willing seller, each having reasonable knowledge of the relevant facts, and neither being under any compulsion to buy or sell.

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the premium paid over the fair market value of the identifiable assets and liabilities.

Cash Flow

A measure of the net amount of cash and cash-equivalents being transferred into and out of a business.