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:

Loanable Funds

The money available for borrowing in the financial markets, derived from savings and influenced by interest rates.

Nominal Interest Rates

The interest rate before taking inflation into account, representing the face value rate at which money can be borrowed.

R&D Decisions

Choices made by businesses or governments regarding the allocation of resources for research and development to innovate or improve products and services.

Loanable Funds Theory

An economic theory that describes the market interaction between borrowers and lenders, determining the equilibrium interest rate.