Under the Revised Act, If the Charter Simply States That

question 80

Multiple Choice

Under the Revised Act, if the charter simply states that the corporation elects to have preemptive rights, the shareholders have no preemptive rights with respect to:

• A) shares issued as compensation to directors, officers, and employees.
• B) shares issued within six months of incorporation.
• C) the corporation's unissued shares.
• D) Shares issued as compensation to directors, officers, and also employees and  shares issued within six months of incorporation.

---

Definitions:

Contribution Format

A format for the income statement that divides variable costs from fixed costs to emphasize the contribution margin.

Fixed Expenses

Costs that do not vary with the level of output or sales, such as rent and salaries.

High-low Method

A technique used in accounting and finance to estimate variable and fixed costs based on the highest and lowest levels of activity.

Monthly Fixed Component

The portion of fixed costs, such as rent or salaries, that does not change with the volume of production or sales in a given month.