For a Corporation That Does Not Utilize the Services of an Independent

question 39

Multiple Choice

For a corporation that does not utilize the services of an independent registrar and stock transfer agent,which of the following represents a weakness in internal control over stock issuance?

• A)Stock certificates are prenumbered.
• B)Stock certificates are signed immediately upon receipt from the printer.
• C)Stock certificates are in the exclusive custody of a responsible officer.
• D)Stock certificates require the signature of two officers.

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Definitions:

Ferns

Non-flowering vascular plants that reproduce via spores and have fronds, part of the Pteridophyta division.

Vascular Plants

Plants that have specialized tissues for transporting water and nutrients throughout the organism, including ferns, conifers, and flowering plants.

Phylum

A phylum is a classification level in biological taxonomy that is below kingdom and above class, used to group together organisms that share a basic body plan.

Rhyniophyta

An extinct group of early vascular plants from the Silurian and Devonian periods.