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Home Questions JS232G5SEP
Target Exam

CUET

Subject

Entrepreneurship

Chapter

Entrepreneurial Planning

Question:

Assertion(A)- The shareholders of a private company can transfer their shares freely.
Reason(R)- No shareholder is forever wedded to the company.

Options:

Both A and R are true. R is the correct explanation of A

Both A and R are true, but R is not the correct explanation of A

A is correct, but R is incorrect

A is incorrect, but R is correct

Correct Answer:

A is incorrect, but R is correct

Explanation:

Transferability of shares : No shareholder is forever wedded to the company. Subject to certain conditions, the shares are freely transferable. The private companies do impose some restrictions on the transfer of shares.

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