The Revised Model Act Would Permit the Directors to Avoid

question 76

Multiple Choice

The Revised Model Act would permit the directors to avoid a shareholder vote for which of the following amendments to the articles of incorporation?

• A)Changing the name from The Oscar Company to McDuddy Corporation.
• B)A change from duration of 99 years to perpetual life.
• C)Authorizing a new class of stock.
• D)Changing the number of directors from three to five.

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Definitions:

Financial Statements

Official documentation reflecting the monetary transactions and status of a company, individual, or different entity.

Accounting Equation

A fundamental principle of accounting that maintains that assets are always equal to the sum of liabilities plus equity (Assets = Liabilities + Equity).

Accounting Equation

The accounting equation represents the relationship between a company's assets, liabilities, and equity, illustrating that assets are funded by borrowing (liabilities) or investing (equity).

Stock Issuances

The process of making new shares available for sale to investors, often used by companies to raise capital.