In Order to Lease Substantially All of a Corporation's Assets

question 53

Multiple Choice

In order to lease substantially all of a corporation's assets not in the usual course of business:

• A) shareholder approval is necessary.
• B) shareholder approval is required if so determined by a subjective test under the 1999 amendments to the Revised Act.
• C) approval of the board and the majority of the corporation's outstanding shares is required; dissenting shareholders do not usually have an appraisal remedy.
• D) shareholder approval is unnecessary, unlike for the sale of assets.

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Definitions:

Activity Base

An activity base is a measure used in cost accounting to allocate overhead costs to products or services, based on activities such as machine hours or labor hours.

Work Orders

Instructions or orders issued for the completion of a job or task, typically including details such as materials, labor, and specifications.

Income From Operations

Earnings generated from a company's regular, core business operations, excluding deductions of interest and taxes.

Income From Operations

Revenue from a company's primary business activities, excluding costs and expenses.