According to the MBCA, All Corporate Powers Shall Be Exercised

question 43

Multiple Choice

According to the MBCA, all corporate powers shall be exercised by or under the authority of, and the business and affairs of a corporation shall be managed under the direction of a _____.

• A) board of directors
• B) president
• C) majority shareholder
• D) chief executive officer

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Definitions:

Cash Operating Costs

Expenses directly associated with the operation of a business that require cash outlay, including rent, utilities, and payroll.

Useful Life

The estimated duration of time an asset is expected to be economically useful to an entity.

Simple Rate

A basic interest rate or return percentage applied to an investment or loan without compounding over a specific period.

Profitability Index

A financial tool used to evaluate the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.