Where No Independent Stock Transfer Agents Are Employed and the Corporation

question 52

Multiple Choice

Where no independent stock transfer agents are employed and the corporation issues its own stocks and maintains stock records, canceled stock certificates should

• A) Be defaced to prevent reissuance and attached to their corresponding stubs.
• B) Not be defaced, but segregated from other stock certificates and retained in a canceled certificates file.
• C) Be destroyed to prevent fraudulent reissuance.
• D) Be defaced and sent to the Secretary of State.

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Definitions:

Positive

In economics, referring to statements or analyses that are fact-based and describe the world as it is, rather than how it should be.

Budget Deficit

Occurs when a government spends more money than it receives in revenue over a specific period of time.

Public Savings

The difference between government revenue and government spending, representing a net saving or borrowing position.

Borrowing

The act of receiving something with the intention to return it or its equivalent, often referring to receiving funds from a lender under the condition of repaying it with interest.