A Shareholder of One-Third of All the Stock in a Corporation

question 21

True/False

A shareholder of one-third of all the stock in a corporation would be entitled to one-third of all corporate assets of an ongoing company.

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Definitions:

Law

A system of rules that are created and enforced through social or governmental institutions to regulate behavior.

Economically Inefficient

A situation where resources are not allocated optimally, leading to waste or the inability to maximize value or output.

Nonrivalry

The idea that one person’s benefit from a certain good does not reduce the benefit available to others; a characteristic of a public good.

Consumption

The use of goods and services by households, often considered a primary economic indicator.