The State Charter Allows a Corporation to Issue Only a Certain

question 24

Multiple Choice

The state charter allows a corporation to issue only a certain number of shares of each class of stock. This amount of stock is called

• A) treasury stock
• B) issued stock
• C) outstanding stock
• D) authorized stock

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Definitions:

Unanticipated Inflation

Inflation that occurs when the general level of prices rises at a rate that was not forecasted or expected by consumers, businesses, or economists.

Saving

The portion of income not spent on current consumption but rather set aside for future use.

Borrowing

The act of obtaining funds from another party with the promise to repay the principal amount along with interest or other charges.

Actual Inflation Rate

The percentage increase in the general price level of goods and services in an economy over a period of time, as measured by the consumer price index or other methods.