The Model Business Corporation Act

question 129

Multiple Choice

The Model Business Corporation Act:

• A) Uses the words "common" and "preferred" in describing distinguishing characteristics of stock.
• B) Defines legal capital as the amount of net assets not available for distribution to shareholders.
• C) Provides guidance for choosing an appropriate par for new issues of stock.
• D) Has affected the laws of most states.

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Definitions:

Office Equipment

Assets like computers, printers, and furniture used in an office to facilitate work.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Indirect

Costs or actions not directly tied to the production or sale of goods, such as administrative expenses, marketing, and support services.

Administrative Facilities

Buildings and spaces used for the management and support functions of an organization.