Generally,in Order to Adopt an Amendment to the Articles of Incorporation

question 2

Multiple Choice

Generally,in order to adopt an amendment to the articles of incorporation of an existing corporation,what must be done?

• A) The shareholders must vote in favor of the amendment.
• B) The promoters must file the amendment in the state of incorporation.
• C) The board of directors must adopt a resolution recommending the amendment and the shareholders must vote to approve the amendment.
• D) The board of directors must adopt a resolution approving the amendment.
• E) The board of directors must vote on the amendment as provided in the bylaws.

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Definitions:

Accounts Receivable

Accounts receivable are funds owed to a company by customers who have received goods or services but have not yet paid for them.

Accounts Payable

The amounts a company owes to creditors for items or services purchased on credit which are due within a year or within a company's operating cycle.

Equipment

Tangible assets used in operations, such as machinery and computers, which are not intended for sale.

Owner's Equity

Owner's equity is the residual interest in the assets of the entity after deducting liabilities, representing the owner's claim on the business assets.