Depending on Its Constitution and the Terms of the Prospectus

question 64

Multiple Choice

Depending on its constitution and the terms of the prospectus, a company that receives more than the required number of applications for its shares will normally:

• A) refund the excess to unsuccessful applicants.
• B) issue the additional shares.
• C) retain the excess in satisfaction of future calls.
• D) refund the excess to unsuccessful applicants or retain the excess in satisfaction of future calls.

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Definitions:

Rigid

Describes something that is inflexible, strict, or set in its ways, often used in both physical and metaphorical contexts to denote lack of adaptability.

Narcissistic Personality Disorder

A mental condition in which a person has an inflated sense of their own importance, a deep need for excessive attention and admiration, troubled relationships, and a lack of empathy for others.

Overinflated Importance

The tendency to assign a greater level of significance or value to something than it inherently has.

Entitled Treatment

Entitlement to treatment refers to a belief or expectation that one deserves special treatment or services, often without consideration for others' needs or fairness.