A Charter Option Statute Authorizes a Corporation to Adopt a Specific

question 47

Multiple Choice

A charter option statute authorizes a corporation to adopt a specific amendment to its articles of incorporation to:

• A) grant directors and officers blanket immunity.
• B) remove breach of duty as a cause of action for monetary damages against directors.
• C) limit director liability without the approval of the board of directors and the shareholders.
• D) limit the maximum liability that may be imposed on directors to the sum of $100,000.

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Definitions:

Revenue in Advance

Income received by a business for services or goods that will be provided in the future; also known as unearned revenue.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, detailing assets, liabilities, and shareholders' equity.

Prepaid Insurance

Prepaid insurance is the portion of an insurance premium that has been paid in advance and is not yet expired at the time of the balance sheet date.

End-Of-Period Spreadsheet

A document used in accounting to compile balances from ledgers for the purpose of preparing financial statements.