Sean owns stock in the Cardinal Corporation.All of the shareholders have agreed that if one wants to sell his or her shares,he or she must offer to sell them to the other shareholders.If the other shareholders do not buy the shares,the selling shareholder may sell them to anyone else.This type of arrangement is known as a(n):

Question

Quizplus · Accepted Answer

A right of first refusal gives existing shareholders the right to purchase shares before they are offered to anyone else. This type of arrangement ensures that the company's ownership remains within a select group and can be beneficial in maintaining control and stability. The other answer choices are not relevant to the situation described in the scenario.

Sean Owns Stock in the Cardinal Corporation