Which of the Following Requirements Must Be Met for a Redemption

question 34

Multiple Choice

Which of the following requirements must be met for a redemption to be treated as substantially disproportionate?

• A)The shareholder must own less than 50% of the outstanding stock (in terms of voting power)after the redemption.
• B)After the redemption, the shareholder must own less than 80% of his percentage ownership of voting stock prior to the redemption.
• C)After the redemption, the shareholder must own less than 80% of his percentage ownership of common stock (voting and nonvoting)prior to the redemption.
• D)All of the above must be met.

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Definitions:

Power Distance

A cultural dimension that describes the extent to which less powerful members of organizations and institutions accept and expect that power is distributed unequally.

Status Inequalities

The uneven distribution of resources, rights, and privileges among different groups or individuals based on their social position.

Collectivism

A cultural orientation where individuals prioritize the goals and well-being of the group or community over personal gain.

Individual Initiative

Involves taking proactive steps or actions by an individual without needing direction or encouragement from others.