An agreement that requires selling shareholders to sell their shares to the other shareholders or to the corporation at the price specified in the agreement is referred to as ________.

Question

Quizplus · Accepted Answer

The agreement described is a buy-and-sell agreement. It provides a mechanism for shareholders to sell their shares, typically upon certain triggering events, such as retirement or death. The agreement specifies a pre-determined price at which the shares will be sold, thus providing liquidity for the selling shareholder and ensuring the remaining shareholders have control over the company. Choices A and B are not correct as they do not accurately describe the agreement, and choice D is not related to the sale of shares.

An Agreement That Requires Selling Shareholders to Sell Their Shares