If the Procedures for Incorporation Are Not Followed Precisely, Others

question 1

True/False

If the procedures for incorporation are not followed precisely, others may be able to challenge the existence of the corporation.

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Definitions:

Cash Dividend

A distribution of earnings made by a company to its shareholders, typically in the form of profits.

Retained Earnings

The portion of a company's profits that is held or retained and not paid out as dividends to shareholders, often used for reinvestment in the business, debt reduction, or share repurchases.

Liabilities

Financial obligations or debts owed by a company to external parties.

Contributed Capital

Contributed capital, also known as paid-in capital, represents the funds raised by issuing stock directly from the corporation.