Which of the Following Is Correct with Regard to Treasury

question 9

Multiple Choice

Which of the following is correct with regard to treasury shares?

• A) The acquisition of such shares by the corporation is a distribution to shareholders with an effect similar to that of a dividend.
• B) Under the Revised Act, treasury shares are unauthorized but issued.
• C) The 1980 amendments to the MBCA eliminated the concept of treasury shares.
• D) Treasury shares are issued and outstanding.

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Definitions:

NAFTA

The North American Free Trade Agreement, a trilateral trade bloc in North America created by Canada, Mexico, and the United States.

United States

is a federal republic in North America comprising 50 states, a federal district, five major self-governing territories, and various possessions.

Ordinance

A piece of legislation enacted by a municipal authority covering matters not already covered by federal or state law.

Cost Benefit Analysis

An evaluation process that compares the costs and benefits of a project or decision to determine its viability or worth.