Which of the Following Represents One of the Basic Rights

question 37

Multiple Choice

Which of the following represents one of the basic rights of stockholders?

• A) Stockholders may sell their stock back to the company if they wish.
• B) Stockholders may authorize a business contract on behalf of the corporation.
• C) Stockholders may determine at what price the company issues stock.
• D) Stockholders may receive dividends from corporate earnings.

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Definitions:

Actual Authority

The explicit power granted to an agent by a principal, allowing the agent to act on the principal's behalf.

Scope

The extent or range of view, work, or activity; the breadth of a project or operation.

Promoter

In a business context, a promoter is an individual or entity involved in organizing and starting a company, raising capital, and taking the necessary steps to establish it.

Unincorporated Business

A business structure without a separate legal entity from its owner, where the owner is personally responsible for the business's debts and obligations.