Which of the Following Is TRUE of Outstanding Shares

question 52

Multiple Choice

Which of the following is TRUE of outstanding shares?

• A)A firm cannot sell more shares than the outstanding shares mentioned in the charter.
• B)Authorized shares become outstanding shares when they are issued or sold to investors.
• C)Outstanding shares are indicated in a firm's corporate charter.
• D)Outstanding shares are the shares repurchased by the firm.

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Definitions:

Freedoms and Rights

Entitlements and liberties that are considered fundamental to human dignity and are often protected by law or custom.

Northwest Ordinance

A significant legislative act passed in 1787 by the Confederation Congress, which set the protocols for the expansion and governance of territories in the Northwest and their path to statehood.

1787

The year notable for the drafting of the United States Constitution at the Philadelphia Convention.

Ordinance of 1784

A law drafted by Thomas Jefferson that regulated land ownership and defined the terms by which western land would be marketed and settled; it established stages of self-government for the West. First Congress would govern a territory; then the territory would be admitted to the Union as a full state.