What is the term for when controlling shareholders pay themselves high salaries while not employing or not paying out dividends to noncontrolling shareholders?
A)Quid pro quo
B)Squeeze-out
C)Collateral
D)Liquidity

Question

What is the term for when controlling shareholders pay themselves high salaries while not employing or not paying out dividends to noncontrolling shareholders?
A)Quid pro quo
B)Squeeze-out
C)Collateral
D)Liquidity

Quizplus · Accepted Answer

Squeeze-out occurs in close corporations when controlling shareholders pay themselves high salaries while not employing or paying dividends to noncontrolling shareholders.

What Is the Term for When Controlling Shareholders Pay Themselves