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Amarilla Is Willing to Contribute Capital to Her Son's New

Question 12

Multiple Choice

Amarilla is willing to contribute capital to her son's new business enterprise.She has asked for qualified assurance of the return of her share capital if the entity winds down its business activity at some future time.Which of the following most likely provides the qualified assurance Amarilla is seeking?


A) redemption rights distributed among the classes of shares
B) shares with financial rights for buyback at a set price
C) shares with preferred rights on dissolution
D) preference shares with redemption rights

Correct Answer:

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