A Freeze-Out

question 47

Multiple Choice

A freeze-out:

• A)occurs when a majority shareholder is "frozen out" by the management regarding such issues as a reduction or elimination of dividends.
• B)can be easily reversed in court.
• C)results in the minority shareholder having little influence in important corporate issues such as loss of employment.
• D)occurs mostly in S Corporations.

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Definitions:

Direct Experience

Knowledge or skill acquired through immediate observation or participation, without the intermediation of others or the use of technology.

Anticipate

The act of expecting or predicting something to happen in the future and possibly preparing for it.

Associative Learning

The process of learning in which a connection or association is formed between two stimuli or between a behavior and a stimulus.

Excessive Amount

An amount that is much more than what is reasonable or necessary.