Which of the Following Is Incorrect with Regard to Treasury

question 40

Multiple Choice

Which of the following is incorrect with regard to treasury shares?

• A) No dividends may be paid on treasury shares.
• B) They are issued but not outstanding.
• C) A corporation may sell treasury shares for any amount the board of directors determines,even if the shares have a par value that is more than the sale price.
• D) The concept of treasury stock was created by the MBCA and is carried forward in the RMBCA.

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Definitions:

Material Benefits

Tangible resources or goods that an individual gains, which can enhance their reproductive success or survival.

Kin-selection Theory

A theory in evolutionary biology suggesting that individuals can pass on their genes by helping relatives to reproduce, not just through their own offspring.

Material Benefits

Tangible rewards or advantages, such as food or shelter, obtained through specific behaviors or interactions.

Good Genes Model

A hypothesis in sexual selection suggesting that individuals choose mates on the basis of traits that indicate genetic quality, leading to enhanced survival or reproductive success in offspring.