A Corporation May Purchase Its Own Shares Only Out of Earned

question 62

True/False

A corporation may purchase its own shares only out of earned surplus unless the articles of incorporation or the shareholders permit purchase out of capital surplus.

---

Definitions:

Target Audience

A specific group of people identified as the intended recipients of a product, service, or marketing message.

Source

The origin or place from which something comes, is obtained, or is derived.

Encoder

A device or program that converts information from one format or code to another, often used for data encoding or signal processing.

Hierarchy of Effects

A sequence of stages through which consumers typically move from awareness to knowledge, liking, preference, conviction, and finally to purchase.