Under the Revised Model Business Corporation Act, _____

question 42

Multiple Choice

Under the revised Model Business Corporation Act, _____.

• A) the filing of the articles of incorporation, evidenced by the return of the copy stamped by secretary of state, is conclusive proof of incorporation
• B) liability will never be imposed on promoters who participated in management and policy decisions
• C) the issuance of the certificate of incorporation is conclusive proof of incorporation to the corporate status, except a quo warranto action brought by the secretary of state
• D) managers will be released from any liability in excess of their initial investment

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Definitions:

Underapplied Amount

The shortfall when the allocated budgeted or standard cost amount is less than the actual expense.

Raw Materials

The basic, unprocessed inputs required for the production process, such as metals, wood, and agricultural products.

Units Requisitioned

Describes the quantity of inventory items requested or ordered for production or usage in a business operation.

Production

The process of creating, manufacturing, or enhancing goods and services through the combination of labor, materials, and machinery.