A _____ Happens When the Owner Realizes There Is Little

question 38

Multiple Choice

A _____ happens when the owner realizes there is little chance of being able to sell the firm and gives the firm to someone as a gift,without compensation.

• A)workout
• B)sell off
• C)pass off
• D)succession

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Definitions:

Equity Securities

Financial instruments that represent ownership interest in a company or corporation, such as common stock.

Cumulative Voting

Cumulative voting is a voting system that allows shareholders to allocate their votes to one or several candidates in a way that can increase minority shareholder representation on the board of directors.

Shareholder

An individual or organization that owns shares in a corporation, thus holding a portion of the company's stock.

Board Of Directors

A group of individuals elected to represent shareholders and make decisions on major company issues, such as corporate policy, hiring executives, and overseeing management.