Directors of a Corporation Should Issue Shares as Soon as Possible

question 5

Multiple Choice

Directors of a corporation should issue shares as soon as possible after incorporation because

• A) bylaws need to be approved by shareholders and so shares must be issued so there are some shareholders.
• B) the corporation needs shareholders to start carrying on business.
• C) until the shares are issued, the only people who can act for the corporation are the directors. If anything happened to them the corporation would be unable to act.
• D) the directors need to be elected by the shareholders.
• E) the shares should be issued before the price goes up.

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Definitions:

AC Line

A conductor or conductors that carry alternating current (AC) electricity from the power source to the load.

Demagnetized

The state of a magnetic material where it has lost its magnetization, either partially or completely.

Magnetomotive Force

The force that drives magnetic flux through a magnetic circuit, analogous to voltage in an electrical circuit.

Magnetic Field

A vector field surrounding magnets and electric currents, which exerts a force on other magnets, currents, or magnetic materials.