Which of the Following Is True Regarding Liability of Frances,if

question 66

Multiple Choice

Which of the following is true regarding liability of Frances,if any,for purchasing the stock at below its fair market value?

• A) If the board wanted to offer it to her, they had that right, and there is no consequence to Frances.
• B) She is liable for double the stated corporate value of the stock in addition to any price she already paid.
• C) She is liable for the stated corporate value of the stock in addition to any price she already paid.
• D) She is liable for paying the difference between the price she paid for the shares and the stated corporate value of the shares.
• E) She is liable for paying the difference between the price she paid for the shares and the stated corporate value of the shares plus a $10,000 penalty.

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Definitions:

Great Plains

A broad expanse of flat land, much of it covered in prairie, steppe, and grassland, that extends across the United States and Canada.

Crust Thickness

The measurement of the Earth's outermost layer's depth, varying between oceanic and continental locations.

Continental

Refers to phenomena or features associated with the continents, in contrast to oceanic aspects.

Oceanic

Pertaining to the ocean, especially the vast, deep areas beyond the continental shelf.