Some States Allow Small Corporations with Fewer Than 100 Shareholders

question 48

True/False

Some states allow small corporations with fewer than 100 shareholders to eliminate the board of directors,as long as someone is assigned the duties that the board would have performed.

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Definitions:

End-Of-Period Spreadsheet

A worksheet used at the end of an accounting period to compile all balances from ledgers, facilitating the preparation of financial statements.

Dividends Account

An account used in double-entry bookkeeping to record dividends paid out to shareholders during an accounting period.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, often reinvested into the business.

Ledger Accounts

Records within a ledger that summarize all the transactions related to a specific account, providing a complete record of financial transactions over the life of the account.