A Provision Giving a Corporation the Right to Purchase a Shareholder's

question 47

True/False

A provision giving a corporation the right to purchase a shareholder's shares on the death of the shareholder is invalid unless approved by a majority of shareholders.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of rules encompassing the details, complexities, and legalities of business and corporate accounting in the United States.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its quick assets, such as cash, accounts receivable, and short-term investments.

Quick Assets

Quick Assets are those assets that can be quickly converted into cash, typically including cash, marketable securities, and receivables.