Under Which of the Following Conditions Would a Shareholder Be

question 8

Multiple Choice

Under which of the following conditions would a shareholder be liable to the corporation or its creditors?

• A) If he or she buys stock that was fully paid for when issued.
• B) If he or she deals only with dividends and not shares.
• C) If he or she is involved in "watered stock" situations.
• D) If he or she was unaware of the illegality of the dividends.

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Definitions:

Black Codes

Laws passed in the United States, particularly in the Southern states after the Civil War, aimed at restricting African Americans' freedoms and compelling them to work in a labor economy based on low wages or debt.

Free Labor Principles

Ideals that oppose slavery and other forms of coerced labor, emphasizing the right of individuals to enter, negotiate, and operate within a labor market freely.

Radical Reconstruction

The period after the Civil War during which Northern leaders attempted to rebuild and transform the Southern states government and society, including granting civil rights to freed slaves.

Civil Rights Bill Veto

An instance of a president or governor rejecting proposed legislation designed to protect or enhance rights for marginalized groups.