Ay-Bee-Cee-Dee Corp. has filed a Subchapter S election under the Internal Revenue Code for taxation...
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AyBeeCeeDee Corp. has filed a Subchapter S election under the Internal Revenue Code for taxation purposes. As you know, corporations are allowed only a limited number of shareholders and, regardless of the number, certain types of entities, including other corporations, cannot be shareholders in corporations. Carter wants to transfer his shares of AyBeeCeeDee Corp. to CarCor, Inc., a corporation that he and his brothers own. If Able, Baker, and Dennis want to preserve their Subchapter election and, thus, block the transfer of Carter's shares to CarCor without being stuck having to purchase Carter's shares themselves which of the following transfer restrictions would best allow them to accomplish their goal?
Multiple Choice
Provision disqualifying purchasers
Right of first refusal
Option agreement
Consent restraint
Buy and sell agreement
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