Restrictions on Transfer of Shares

question 35

Multiple Choice

Restrictions on transfer of shares:

• A)exist only for closely held corporations to control who may become shareholders.
• B)are valid under the common law if they are reasonable and adopted for a lawful purpose.
• C)are valid under the Revised Act if the restriction is conspicuously noted on the stock certificate.
• D)All of the above.
• E)Both (b) and (c).

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Definitions:

Bill of Material

A comprehensive list of raw materials, components, and assemblies needed to manufacture or repair a product or service.

Grill Parts Kit

A set of replacement or upgrade components for a grill, including items like burners, grates, and igniters.

Washers

Flat disks with a hole in the middle, typically made of metal or plastic, used to distribute the load of a threaded fastener, like a bolt or nut.

Bolts

Fasteners consisting of a head and a cylinder-shaped body, with threading along part of its length, designed to be used with a nut.