The Revised Act Permits the Board of Directors to Adopt

question 28

Multiple Choice

The Revised Act permits the board of directors to adopt certain amendments without shareholder action, unless the articles of incorporation provide otherwise. These amendments would include:

• A) extending the duration of a corporation if it was incorporated when limited duration was required by law.
• B) changing each issued and unissued authorized share of an outstanding class into a greater number of whole shares if the corporation has only one class of shares.
• C) making minor name changes.
• D) All of these.

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Definitions:

Financial Performance

An assessment of how well a company can use assets from its primary mode of business and generate revenues.

ROE

Return on Equity; a financial ratio indicating the profitability of a company in relation to its equity capital.

EPS

Earnings Per Share; a metric that indicates the portion of a company's profit allocated to each outstanding share of common stock.

Financial Risk

The possibility of losing money on an investment or business venture, including the risk of losing some or all of the original investment.