In Addition to the Articles of Incorporation, a Corporation Needs

question 49

Multiple Choice

In addition to the Articles of Incorporation, a corporation needs detailed operating rules. These operating rules that are important enough for director's approval yet not contained in the Charter are called

• A) by- laws.
• B) work rules.
• C) Charter exhibits A, B, C, etc.
• D) standard operating procedures (SOP directory).
• E) the corporate operations roster.

---

Definitions:

Dividend Pay-Out

The portion of a company's earnings distributed to its shareholders as dividends.

Market Efficiency

A financial market theory suggesting that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

Security Prices

The market value for tradable financial instruments such as stocks, bonds, and derivatives at any given time.