Fact Pattern 24-2

question 24

Multiple Choice

Fact Pattern 24-2
Bertram, Claudia, and Dynah form Eat Local, Inc., a closely held corporation, and agree to restrict the transfer of its stock to anyone else. The agreement provides that if one of the shareholders dies, his or her shares of stock in Eat Local will be divided to maintain the proportionate control of the survivors.
-Refer to Fact Pattern 24-2.A reasonable purpose for a stock transfer restriction in a closely held corporation,like the agreement between Bertram,Claudia,and Dynah,is

• A)a desire to limit the participation of outsiders in the firm.
• B)a goal to restrain insiders from taking advantage of their position.
• C)an attempt to restrain the free flow of commerce among investors.
• D)a wish to restrict the transfer of the shareholders' physical assets.

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Definitions:

Psychoanalytic Perspective

View of human development as shaped by unconscious forces that motivate human behavior.

Acting Out

Acting out is the expression of emotional conflict or feelings through actions, often inappropriate or disruptive, as a substitute for verbal expression.

Humanistic

An approach in psychology that emphasizes empathy and stresses the good in human behavior.

Hypotheses

Proposed explanations or predictions for specific phenomena, typically based on limited evidence, to be tested through further investigation.