If a Shareholder Supplies Needed Material to the Business Then

question 379

Multiple Choice

If a shareholder supplies needed material to the business then he:

• A) will become a creditor of the corporation, but will not 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) none of the other choices are correct

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Definitions:

Compensating Salespeople

The practice of providing monetary and non-monetary rewards to sales staff for their performance and achievements.

Stock Ownership Incentive Plans

Programs designed to give employees the opportunity to buy or receive shares in the company they work for as a form of incentive.

Individual Incentive Plans

Compensation strategies designed to motivate individual employees by providing rewards, typically financial, based on their personal performance or achievements.

Profit-sharing Plans

Employee benefit plans that provide workers with a share of the company's profits based on its quarterly or annual earnings.