The Revised Act Explicitly Requires a Corporations's Charter to Authorize

question 61

Multiple Choice

The Revised Act explicitly requires a corporations's charter to authorize:

• A)one or more classes of shares that have limited voting rights.
• B)one or more classes of shares that together are entitled to receive the net assets of the corporation upon dissolution.
• C)Both (a) and (b).
• D)nothing. The Revised Act only recommends, not requires, the charter contents.

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Definitions:

Producer Surplus

Sum over all units produced by a firm of differences between the market price of a good and the marginal cost of production.

High Quality

A characteristic of products or services that meet or exceed the expectations of consumers, often associated with durability, reliability, and excellence.

Marginal Benefit

The additional benefit received from consuming one more unit of a good or service.

Marginal Social Cost

The additional cost to society as a whole from producing one more unit of a good or service, including both private costs and externalities.