Under the Revised Model Business Corporation Act, _____

question 42

Multiple Choice

Under the revised Model Business Corporation Act, _____.

• A) the filing of the articles of incorporation, evidenced by the return of the copy stamped by secretary of state, is conclusive proof of incorporation
• B) liability will never be imposed on promoters who participated in management and policy decisions
• C) the issuance of the certificate of incorporation is conclusive proof of incorporation to the corporate status, except a quo warranto action brought by the secretary of state
• D) managers will be released from any liability in excess of their initial investment

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Definitions:

Future Value

The future date value of an asset or cash that matches a given sum today.

Equal Amount

A quantity that is the same in value, size, or measure as another.

Compounded Annually

This involves the calculation of interest added to the principal sum of a loan or deposit once per year, where each year's interest is added to the principal for the calculation of future interest.

Manager

An individual responsible for directing and overseeing the work of others and handling administrative tasks in an organization or department.