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To Avoid Sharing Control with Someone They Do Not Know

Question 48

Multiple Choice

To avoid sharing control with someone they do not know or like, it would be most effective for the shareholders of a close corporation to


A) require more than a majority of directors approve any board action.
B) restrict the transferability of shares to outside persons.
C) reorganize into a sole proprietorship or partnership.
D) hold special shareholders' or directors' meetings on an annual basis.

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