In the Past,minicomputers Were Used for Small Businesses._________________________

question 112

True/False

In the past,minicomputers were used for small businesses._________________________

Understand the requirements and consequences of filing corporate annual reports and paying associated state fees or taxes.

Recognize the liability of promoters and incorporators in relation to preincorporation contracts and after incorporation.

Describe the process and significance of the secretary of state's approval of articles of incorporation.

Identify the concept of watered shares and the responsibility of the board of directors in share valuation.

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Definitions:

Stock Split

An action by a company to increase the number of its outstanding shares by issuing more shares to current shareholders.

Market Price

The amount at which an asset is bought or sold in the market.

Shares Outstanding

The total number of a company's shares of stock that are owned by shareholders, including those held by institutional investors and restricted shares owned by the company’s officers and insiders.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the total market value remains the same.