The Revised Act Authorizes Shareholders in Closely Held Corporations to Adopt

question 60

Multiple Choice

The Revised Act authorizes shareholders in closely held corporations to adopt shareholder agreements that depart from statutory norms by altering the governance of the corporation. These agreements:

• A) are effective if adopted by a majority of the shareholders.
• B) are valid for the life of the corporation unless a new agreement is reached.
• C) are binding on shareholders, the state, creditors, and other third parties.
• D) terminate automatically if the corporation's shares are traded publicly.

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Definitions:

Focal Company

The primary business within a larger supply chain or network, which drives the strategic decisions and partnerships.

Consumer's Immediate Environment

The consumer's immediate environment encompasses the physical and social surroundings that influence the consumer's behavior, decisions, and experiences during the purchasing process.

Competition

The rivalry among businesses to attract customers and achieve market superiority by offering better goods, services, or prices.

Fellow Consumers

Other customers who purchase and use the same products or services, whose opinions and behaviors can influence individual buying decisions.