Which of the Following Is True Regarding State Rules of Corporate

question 25

Multiple Choice

Which of the following is true regarding state rules of corporate governance?

• A) Under the U.S.Constitution,a state may only apply its corporate governance rules to corporations incorporated in the state.
• B) California imposes state pro-shareholder rules on quasi-foreign corporations.
• C) There are no state rules of corporate governance because the Securities and Exchange Commission has preempted the field.
• D) By federal law,if a state wishes to impose corporate governance requirements on corporations incorporated in the state,then the same rules must be imposed on corporations operating in the state but incorporated in another state.

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Definitions:

Total Assets

The sum of all assets owned by an entity, including both current and non-current assets, as recorded on the balance sheet.

Total Asset Turnover

A financial ratio that measures a company's effectiveness in using its assets to generate sales or revenue.

Full Capacity

The highest amount of production a business can maintain for an extended time without needing to raise its fixed expenses.

Capacity

The maximum level of output that a company can sustain to make a product or provide a service, taking into account current resources and facilities.