Which of the Following Is Correct Concerning the Management of Close

question 12

Multiple Choice

Which of the following is correct concerning the management of close corporations?

• A)The MBCA Statutory Close Corporation Supplement grants the shareholders unlimited power to restrict the discretion of the board of directors.
• B)Modern close corporation statutes require close corporations to comply with most management formalities.
• C)The MBCA Statutory Close Corporation Supplement permits a close corporation to dispense with shareholders and directors.
• D)The California General Corporation Law permits a close corporation to be managed as if it were a sole proprietorship.

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Definitions:

Free-Rider Problem

A situation in which individuals benefit from resources, goods, or services without paying for the cost of the benefit, leading to underprovision of those goods or services.

Local Government

A form of public administration which, in a majority of contexts, exists as the lowest tier of administration within a given state.

Funds

Resources in the form of money available for transactions or investments.

Free Bus Rides

A policy or situation where public transportation buses are provided to passengers without any charge.