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.

---

Definitions:

Centration

A term from cognitive development theory describing a focus on one aspect of a situation while ignoring others, common in early childhood.

Vocabulary Explosion

Vocabulary explosion refers to the rapid increase in the number of words a child learns and uses, typically occurring between the ages of two and three.

Lateralization

The tendency for some neural functions or cognitive processes to be specialized to one side of the brain or the other.

Perseveration

The repetition of a particular response (such as a word, phrase, or gesture) despite the absence or cessation of a stimulus.