What Authority Determines How Many Shares of Stock a Corporation

question 89

Multiple Choice

What authority determines how many shares of stock a corporation may issue?

• A) A vote by the board of directors
• B) The rules of GAAP
• C) Regulations of the Securities and Exchange Commission
• D) The government laws in the state where the business is incorporated

---

Definitions:

Gross Margin Percentage

A financial metric that represents the percentage of total sales revenue remaining after accounting for the cost of goods sold.

Return on Equity

A gauge of a business's earnings effectiveness, demonstrating the profitability produced per dollar invested by shareholders.

Return on Total Assets

A financial ratio that measures a company's ability to generate earnings from its assets.

Gross Margin Percentage

A financial metric used to assess a company's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold.