Which of the Following Statements Is Correct

question 18

Multiple Choice

Which of the following statements is correct?

• A) The corporate bylaws are the set of rules drawn up by the state to enable managers to run the firm in accordance with state laws.
• B) Procedures for electing corporate directors are contained in bylaws while the declaration of the activities that the firm will pursue and the number of directors are included in the corporate charter.
• C) Procedures which govern changes in the bylaws of the company are contained in the corporate charter.
• D) Although most companies design a charter, only the bylaws are legally required to be filed with the secretary of state in order for a company to be in official existence.

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Definitions:

Registration Document

A document that officially records the details of an entity, vehicle, or property, facilitating its official recognition.

SEC

The United States Securities and Exchange Commission is a federal body tasked with enforcing the laws governing securities and overseeing regulations within the securities sector.

Issuance Of Securities

The process by which securities, such as stocks or bonds, are made available for sale to the public.

Pending Lawsuit

A legal case that has been initiated but not yet resolved or concluded in court.