Which of the following statements is true?

Question

Quizplus · Accepted Answer

Authorized shares are the maximum number of shares that a corporation can issue, as outlined in its articles of incorporation.

Option B is false as a corporation can repurchase its own shares after they have been issued, which is known as a share buyback or stock repurchase.

Option C is true as treasury stock is the term used to describe shares that are repurchased by the corporation and held in its own treasury. These shares can be voted on by the corporation, but they do not have voting rights themselves.

Option D is false as the corporation is not required to sell all of its authorized shares. The number of shares actually issued may be less than the authorized amount.

Which of the Following Statements Is True