Directors of a Corporation Should Issue Shares as Soon as Possible

question 61

Multiple Choice

Directors of a corporation should issue shares as soon as possible after incorporation because

• A)the shares should be issued before the price goes up.
• B)the directors need to be elected by the shareholders.
• C)until the shares are issued,the only people who can act for the corporation are the directors.If anything happened to them,the corporation would be unable to act.
• D)by-laws need to be approved by shareholders,and so shares must be issued so there are some shareholders.
• E)the corporation needs shareholders to start carrying on business.

---

Definitions:

Differentiation Strategy

A business approach where a company develops unique products or services to stand out from competitors.

Unique Product

A product that is distinct in its features, functionality, or branding, setting it apart from competitors' offerings.

Cost Leadership Strategy

A business strategy focused on gaining competitive advantage by being the lowest cost producer in the market while maintaining acceptable quality levels.

Low Prices

A pricing strategy where goods or services are offered to consumers at a lower cost compared to competitors.