Which of the following statements reflects the transferability of ownership rights in a corporation?
A)If a shareholder decides to transfer ownership, he must transfer all of his shares.
B)A shareholder may dispose of part or all of his shares.
C)A shareholder must obtain permission of the board of directors before selling shares.
D)A shareholder must obtain permission from at least three other shareholders before selling shares.

Question

Quizplus · Accepted Answer

A shareholder may dispose of part or all of his shares, meaning they have the ability to transfer ownership of some or all of their shares. Option A is incorrect because a shareholder can choose to transfer only a portion of their shares. Option C is incorrect because permission from the board of directors is not necessary for a shareholder to transfer ownership. Option D is incorrect because permission from other shareholders is not required for a shareholder to transfer ownership.

Which of the Following Statements Reflects the Transferability of Ownership