Fundamental Changes to a Corporation

question 48

Multiple Choice

Fundamental changes to a corporation:

• A) fall within the authority of the board of directors.
• B) include the sale of substantially all of the corporation's assets in the regular course of business.
• C) need to be approved by shareholders,by a majority of the shares present at a meeting at which a quorum is present,under the 1999 amendments to the Revised Act.
• D) require unanimous shareholder approval.

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Definitions:

Operating Profit Margin

A profitability ratio calculated by dividing operating profit by total revenue, reflecting the percentage of revenue that is left over after paying for variable costs of production.

Asset Turnover

A financial ratio that measures the efficiency of a company's use of its assets to generate sales or revenue.

Return On Assets

A financial metric that indicates how profitable a company is relative to its total assets, measuring how efficiently a company uses its assets to generate earnings.

Profit Margin

A financial ratio calculated as net income divided by revenue, indicating the percentage of revenue that is retained as profit after accounting for costs and expenses.