The articles of incorporation state the number of shares that may be issued.The corporation:
A)must issue all authorized shares.
B)is unlimited in the number of authorized shares that it may have.
C)needs only board approval to issue authorized shares.
D)Both A and B.
E)Both B and C.

Question

Quizplus · Accepted Answer

The articles of incorporation state the number of shares that may be issued, but the corporation is not required to issue all authorized shares. The corporation is also not limited in the number of authorized shares it may have, so option B is correct as well. Option C is also true because board approval is needed to issue authorized shares. Therefore, option E is the best choice.

The Articles of Incorporation State the Number of Shares That