The Revised Act Authorizes Shareholders in Closely Held Corporations to Adopt

question 65

Multiple Choice

The Revised Act authorizes shareholders in closely held corporations to adopt shareholder agreements that depart from statutory norms by altering the governance of the corporation.These agreements:

• A) are valid for the life of the corporation unless a new agreement is reached.
• B) are binding on shareholders, the state, creditors, and other third parties.
• C) terminate automatically if the corporation's shares are traded publicly.
• D) are effective if adopted by a majority of the shareholders.

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Definitions:

Invested

Assets or capital put into an endeavor or investment with the expectation of generating a profit.

Days

Units of time measuring 24 hours, constituting the most basic building block of calendars.

Missing Value

Data that is absent from a dataset, which can occur for various reasons and potentially impact analyses.

Calculate

To ascertain by computation; determine by mathematical means.