Question Details

Which of the following statements reflects the transferability 



1. Which of the following would not be true of a privately held corporation?
a. It is sometimes called a closely held corporation.
b. Its shares are regularly traded on the New York Stock Exchange.
c. It does not offer its shares for sale to the general public.
d. It is usually smaller than a publicly held company.
2. Which of the following is not true of a corporation?
a. It may buy, own, and sell property.
b. It may sue and be sued.
c. The acts of its owners bind the corporation.
d. It may enter into binding legal contracts in its own name.
3. Ed Stone has invested $400,000 in a privately held family corporation. The corporation
does not do well and must declare bankruptcy. What amount does Stone stand to lose?
a. Up to his total investment of $400,000.
b. Zero.
c. The $400,000 plus any personal assets the creditors demand.
d. $200,000.
4. Which of the following statements reflects the transferability of ownership rights in a
corporation?
a. If a shareholder decides to transfer ownership, he must transfer all of his shares.
b. A shareholder may dispose of part or all of his shares.
c. A shareholder must obtain permission from the board of directors before selling shares.
d. A shareholder must obtain permission from at least three other stockholders before
selling shares.
5. A corporate board of directors does not generally
a. select officers.
b. formulate operating policies.
c. declare dividends.
d. execute policy.




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