Question

You recently sold 100 shares of your new company, XYZ Corporation, to your brother at a family reunion. At the reunion your brother gave you a check for the stock and you gave your brother the stock certificates. Which of the following statements best describes this transaction?
- This is an example of an exchange of physical assets.
- This is an example of a primary market transaction.
- This is an example of a direct transfer of capital.
- This is an example of a money market transaction.
- This is an example of a derivatives market transaction

Answer 1

Answer:

Corporate shareholders escape liability for the firm's debts, but this factor may be offset by the tax disadvantages of the corporate form of organization

Explanation: