If a Corporation Has Fewer Than ________ Shareholders, the Revised

question 75

Multiple Choice

If a corporation has fewer than ________ shareholders, the Revised Model Business Corporation Act allows companies to eliminate the board of directors entirely.

• A) 100
• B) 50
• C) 30
• D) 25
• E) 10

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Definitions:

Hedge Risk

A financial strategy used to limit or offset the probability of loss from fluctuations in the prices of currencies, commodities, or securities.

Speculate

The act of investing or trading in financial assets with high risk in anticipation of significant returns.

American Option

A type of options contract that allows holders to exercise the option at any time up to and including the expiration date.

European Option

A type of options contract that can only be exercised at its expiration date, not before, as opposed to American options which can be exercised at any time before expiration.