While incorporating,the future owners of the corporation want to restrict stock transferability to ensure that existing shareholders have the right to buy any shares of stock offered for sale by a shareholder within a specified time period.The right they should establish in their corporate bylaws is referred to as the ________.

Question

Quizplus · Accepted Answer

A)One method of restricting stock transferability is the right of first refusal.If a
corporation establishes this right in its bylaws,the corporation or its shareholders have the right to purchase any shares of stock offered for resale by a shareholder within a specified period of time.
B)One method of restricting stock transferability is the right of first refusal.If a corporation establishes this right in its bylaws,the corporation or its shareholders have the right to purchase any shares of stock offered for resale by a shareholder within a specified period of time.
C)One method of restricting stock transferability is the right of first refusal.If a corporation establishes this right in its bylaws,the corporation or its shareholders have the right to purchase any shares of stock offered for resale by a shareholder within a specified period of time.

While Incorporating,the Future Owners of the Corporation Want to Restrict