Two Major Liabilities of Start-Ups Are

question 57

Multiple Choice

Two major liabilities of start-ups are

• A)newness and complexity.
• B)newness and smallness.
• C)oversaturation and smallness.
• D)oversaturation and inexperience.
• E)inexperience and complexity.

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Definitions:

Common Shares

Shares to which no preferential rights or privileges are attached.

Broadly Held Corporation

A corporation with a large number of shareholders, spreading ownership widely among individuals.

Closely Held Corporation

A corporate entity characterized by a small group of shareholders, often with family members holding a majority of the stock.

Fiduciary Duty

An obligation to act in the best interest of another party, such as the relationship between a trustee and the beneficiaries of a trust.