The Charter of a Corporation Provides for the Issuance of 100,000

question 36

Multiple Choice

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 30,000 shares were originally issued and 5,000 were subsequently reacquired. What is the number of shares outstanding?

• A) 35,000
• B) 70,000
• C) 25,000
• D) 30,000

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Definitions:

Budget Acceptance

The process or act of formally approving a financial plan for revenues and expenses over a specific period.

Corporate Level

Pertains to major strategic decisions affecting the whole company, typically made by top-level management.

Responsibility Centres

Units within an organization for which managers are responsible, focusing on revenues, costs, or a combination of both, to measure performance.

Budgetary Slack

The practice of underestimating revenue or overestimating expenses to make budget targets more easily attainable.