If a Shareholder Works for the Business Then He

question 397

Multiple Choice

If a shareholder works for the business then he:

• A) will become a creditor of the corporation and will enjoy the same rights of recovery against the corporation as any other creditor
• B) will not officially become a creditor of the corporation, but will enjoy the same rights of recovery against the corporation as any other creditor
• C) will be removed from the corporation
• D) will be forced to sell his shares in the company
• E) will become a creditor of the corporation, but will not enjoy the same rights of recovery against the corporation as any other creditor

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Definitions:

Oligopolistic Competition

Occurs when only a few firms dominate a market.

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The aspect of aviation that involves operating aircraft for hire to transport passengers or cargo on scheduled or charter services.

Electrical Service

Maintenance, repair, and installation services provided for electrical systems and components in buildings and infrastructure.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.