When Independent Stock Transfer Agents Are Not Employed and the Corporation

question 30

Multiple Choice

When independent stock transfer agents are not employed and the corporation issues its own stock and maintains stock records, canceled stock certificates should:

• A)be defaced to prevent reissuance and attached to their corresponding stubs.
• B)not be defaced but be segregated from other stock certificates and retained in a canceled certificates file.
• C)be destroyed to prevent fraudulent reissuance.
• D)be defaced and sent to the secretary of state.

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Definitions:

Income Potential

The maximum amount of money someone can earn or a business can generate under current conditions.

Dead Stock

Unsold goods that have been in inventory for a long time and are not expected to be sold due to their obsolescence or lack of demand.

Supplier Relationships

Supplier relationships pertain to the interactions and dealings between a business and its suppliers, involving the negotiation of terms, management of supply, and collaboration for mutual benefit.

Inventory

The total amount of goods or materials held in stock by a company or business.