In a Closely Held Corporation,one of the Steps That Should

question 41

Multiple Choice

In a closely held corporation,one of the steps that should be taken to avoid legal difficulties is:

• A)hold annual meetings to elect officers are directors.
• B)make sure that the stockholders make all the major decisions.
• C)mingle corporate assets and the personal assets.
• D)None of the above

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Definitions:

Market Efficiency

A concept in financial economics that suggests that asset prices fully reflect all available information.

Well-Organized Markets

Financial markets characterized by high levels of efficiency, transparency, liquidity, and regulation, facilitating fair and orderly trading and pricing of securities.

Efficient Markets

A hypothesis suggesting that financial markets are "informationally efficient," meaning prices of securities reflect all available information at any moment.

Expected Risk Premium

The extra return investors require to hold a risky asset over a risk-free asset, reflecting the additional risk.