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.

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Definitions:

Extinction Rate

The rate at which species and populations of organisms die out over time, often accelerated by human activities and environmental changes.

Environmental Conditions

The various physical and biological factors that influence the life and activities of organisms, including climate, soil, and water.

Speciation

The process by which new distinct species evolve from a single ancestral species.

Misconception

A misunderstanding or incorrect belief about something due to wrong or misleading information.