A Company Does Not Have to Issue All of the Shares

question 15

True/False

A company does not have to issue all of the shares authorized by the corporate charter, but it cannot issue more shares than are authorized.

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Definitions:

Long Run

A period in which all inputs, including capital, are variable, allowing firms to adjust all factors of production.

Economic Costs

The comprehensive expense incurred from selecting one option over another, covering both direct and indirect costs.

Own Capital

The personal resources that an investor or business owner invests into a business venture.

Economic Costs

Total expenses incurred in the production of goods and services, including both explicit and implicit costs.