Secondary Sources of Law

question 5

Multiple Choice

Secondary sources of law:

• A) are looked to when there is no primary source of law that applies to the facts of a case.
• B) are considered a valid independent authority.
• C) apply to both federal and state legal issues.
• D) have no legally binding effect.

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Definitions:

Authorized Stock

The maximum number of shares a corporation is legally permitted to issue, as stated in its articles of incorporation.

Corporate Charter

A legal document issued by a government that establishes a corporation as a legal entity and outlines its rights and obligations.

Formal Accounting

A systematic process for recording, summarizing, and reporting the financial transactions of an organization, adhering to standardized guidelines and principles.

Initial Capital

The amount of money that is invested in a business at the start, used to cover startup costs and initial operating expenses.