Charles Owns 1,000 Shares of Stock in Temperan,Inc

question 45

Multiple Choice

Charles owns 1,000 shares of stock in Temperan,Inc.Charles wants to obtain corporate records including the corporation's minute book and accounting records.Under the Model Act,Charles is entitled to this information if he requests it in good faith and

• A)he has a proper purpose.
• B)he owns at least 1 percent of the company or $2,000 of stock.
• C)he is an employee of Temperan.
• D)he is a controlling shareholder.

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Definitions:

Credit

An accounting entry that increases a liability or equity account or decreases an asset or expense account.

Unearned Rent

Income received by an entity for rent that has not yet been earned, typically because the period of tenancy has not yet occurred.

Accounts Payable

Liability accounts listing the amounts a company owes to suppliers for goods or services received on credit.