Last Minute

Question 1

stock valuation: book value

Answer 1

put assets on balance sheet and depreciate value over time (doesn’t usually reflect reality)

Question 2

stock valuation: capitalized earnings

Answer 2

look at the profit business is making and look into future profits and dived by number of shares

Question 3

stock valuation: appraisal

Answer 3

have an outside person come up with a number

Question 4

stock valuation: mutual agreement

Answer 4

everyone sits down and decides ho much the shares are worth on a regular basis

Question 5

type of stock transfers: right of first refusal

Answer 5

before selling shares to buyer, seller has to give ROFR to corporation to buy the shares at the price being offered by the buyer

Question 6

type of stock transfer provisions: first option

Answer 6

price set in advance for corporation to buy shares

Question 7

type of stock transfer provision: consent

Answer 7

before selling shares to outside buyer, seller has to get consent from board/shareholders/etc.

Question 8

type of stock transfer provision: sale option

Answer 8

if something happens, seller has the right to sell shares to board or other shareholders (they have to buy them). (should put in agreement)

Question 9

type of stock transfer provision: buy-sell agreement

Answer 9

corporation and remaining shareholders have to buy shares if a specified event occurs