If a Corporation Has Fewer Than ________ Shareholders,the Revised Model

question 48

Multiple Choice

If a corporation has fewer than ________ shareholders,the Revised Model Business Corporation Act allows companies to eliminate the board of directors entirely.

• A)100
• B)10
• C)50
• D)30
• E)25

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Definitions:

Basis

The amount of investment in an asset for tax purposes, used to calculate gain or loss on the asset's sale.

Debt

Debt signifies an amount of money borrowed by one party from another, often with the agreement that it will be repaid, usually with interest, at a future date.

Schedule L

A form used by businesses filing their federal tax return to provide a balance sheet if they have more than $250,000 in receipts or assets.

Net Income

The total earnings of a company after subtracting all expenses from revenues, indicating the actual profitability of the company.