Ali and Tom Are Both Shareholders in ABC Electrical Ltd

question 26

Multiple Choice

Ali and Tom are both shareholders in ABC Electrical Ltd. Ali has 51% of the shares and Tom has 49%. Ali is offered $100,000 to sell his shares to DEF Electrical Ltd. Tom is not offered anything for his shares. Does Tom have any rights?

• A) Tom may have statutory rights under the derivative action.
• B) Tom may have contractual rights under a shareholders' agreement.
• C) Tom may have statutory rights under the oppression remedy.
• D) Tom may have contractual rights under a shareholders' agreement and statutory rights under the oppression remedy.
• E) Tom may have contractual rights under a shareholders' agreement and statutory rights under the derivative action.

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Definitions:

Ending Balance

The final amount in an account at the end of a financial reporting period, after all adjustments have been made.

Work in Process Inventory

Goods that are in various stages of the production process but are not yet finished products.

Job-Order Costing

An accounting methodology used for tracking the production costs (materials, labor, and overhead) of custom products or jobs, allowing for detailed monitoring and costing of individual orders.

Ending Balance

The final amount in an account at the end of an accounting period after all debits and credits are accounted for.