The Authority to Make Decisions Without Reference to Specific Rules

question 75

Multiple Choice

The authority to make decisions without reference to specific rules or facts, using instead one's own judgment is referred to as

• A)exchange.
• B)interchange
• C)system transfer.
• D)discretion.

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Definitions:

No-par Shares

Stocks issued without a specified face value, where the value is determined by the price investors are willing to pay for them.

Stock Subscription

An agreement to purchase a specified number of shares in a company, often before they are available to the general public.

Board Of Directors

A group of individuals elected to represent shareholders and oversee the management and major decisions of a corporation.

Stock Warrants

Financial instruments that give the holder the right, but not the obligation, to buy shares of a company at a specified price before the warrant expires.