Bessie wants to invest $50,000 in a private corporation currently controlled by her brother, Max. Max would own 60% of the shares; 20 other investors, including Bessie, would own 2% each. Bessie is unsure about what her management role will be. What statement is true?

1. Bessie will become one of the directors of the corporation.

2. The directors must be selected from among the 21 shareholders.

3. Bessie will have the right to vote on any future mergers. 4. Bessie has the right to be involved in the day-to-day management of the business and in the affairs of the corporation.

a) 1 and 3

b) 2 and 4

c) 3 only

d) 4 only