Question

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

Answer 1

B) A stockholder may dispose of part or all of his shares.

Step-by-step explanation:

A corporation is a type of business that acts as a separate legal entity and its owners have stocks and they are known as stockholders. A stockholder can transfer his/her stocks freely unless there is any kind of restriction in the articles of incorporation. According to this, the answer is that a stockholder may dispose of part or all of his shares.