23. (Chapter 16) An organizational meeting of the initial directors of a corpora

Question

23. (Chapter 16) An organizational meeting of the initial directors of a corporation: a. b. c. Must be held prior to the filing of the articles of incorporation. Must be held after the filing of the articles of incorporation. Must be held, but can occur before or after the filing of the articles of on. Must be held only if there is business that needs to be transacted, and any such meeting must occur after the articles of incorporation have been filed. d. 24. (Chapter 16) What is the significance of the term "preferred in reference to preferred stock? a. It is viewed to generally be a better investment than common stock. b. Preferred stockholders usually have better voting rights than common Preferred stockholders receive preference over creditors of the corporation in the event of liquidation. Preferred stockholders receive certain preferences over common stockholders with respect to dividends or with respect to assets in the event of liquidation. c. (Chapter 16) The document by which a shareholder grants another person the right to vote the shareholder's shares at a shareholders' meeting is called a a. Power of attorney. b. Proxy. c. Voting trust. 25. d. Election agency (Chapter 16) Which of the following is true about the power to amend the bylaws of a corporation? 26. a. This power is held exclusively by the board of directors b. The articles of incorporation grant this power exclusively to either the shareholders or the board of directors. This power is held exclusively by the shareholders. Where the articles of incorporation have granted the power to amend the bylaws to the board of directors, the shareholders also retain an absolute power to amend the bylaws. c. d. (Chapter 16) Which of the following would not be a typical item of business at the organizational meeting of the corporation? a. Adoption of bylaws b. Election of corporate officers c. Selection of incorporators d. Authorizing the issuance of shares of stock 27.

Explanation / Answer

ans 23=option b

Must be conducted after the articles of incorporation have been filed.

After the incorporation documents are filed, filing fees is paid, bylaws have been drafted, and meeting with lawyers & accountants has been done, the next step in initiating a corporation is to conduct an initial board meeting. This is needed to legally form a corporation. In this , the initial directors sanction the governing papers , make resolutions , & select the first BODs.

ans 24=option d

A preferred shares is a category of ownership in a firm that has a superior claim on its assets & incomes than the common shares. Preferred stock usually has a dividend which must be disbursed prior to paying out the dividends to common shareholders, & the shares normally don’t carry voting privileges

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