The Consent of a Corporation's Shareholders Must Be Received Prior

question 129

Multiple Choice

The consent of a corporation's shareholders must be received prior to any:

• A)issue of new securities.
• B)selection of an underwriter.
• C)increase in authorized capital.
• D)private placement of securities.

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Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales, such as rent, insurance, and salaries.

Net Operating Income

Income derived from the main activities of a business, not including interest and tax deductions.

Variable Expenses

Costs that change in proportion to the activity of a business, such as raw materials and direct labor costs.

Fixed Expenses

Costs that do not change with the level of production or sales over a short period, such as rent or salaries.