The Authorized Shares of a Corporation

question 109

Multiple Choice

The authorized shares of a corporation

• A)only reflects the initial capital needs of the company.
• B)is indicated in its by-laws.
• C)is indicated in its charter.
• D)must be recorded in a formal accounting entry.

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Definitions:

Classification

The systematic arrangement of business transactions and accounts in categories or groups based on similar characteristics for financial reporting and analysis.

Distribution

The process of making a product or service available for the consumer or business user that needs it.

Earnings Per Share

A financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company’s profitability.

Preferred Dividends

Dividends that are paid out to preferred shareholders before any dividends are distributed to common shareholders, typically at a fixed rate.