Conversion Procedures Are Used to Eliminate Minority Shareholders by Forcing

question 125

True/False

Conversion procedures are used to eliminate minority shareholders by forcing them to accept cash or property for their shares.

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Definitions:

Dividends

Payments made by a corporation to its shareholders, usually derived from the company's profits.

Separate Legal Person

An entity, such as a corporation, that has legal rights and obligations independent of its owners or members, allowing it to enter into contracts and own property.

Vicariously Liable

Legal principle where one party is held liable for the actions of a subordinate or associate due to their relationship to the wrongdoer.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, giving them a proportionate interest in the company's earnings and assets.