The authorized stock of a corporation
A) must be recorded in a formal accounting entry
B) only reflects the initial capital needs of the company
C) is indicated in its bylaws
D) is indicated in its charter

Question

Quizplus · Accepted Answer

The authorized stock of a corporation is indicated in its charter, which is a legal document filed with the state to incorporate the company. The bylaws may also detail the corporation's management and operational structure, but the initial authorization of stock is specifically included in the charter.

The Authorized Stock of a Corporation