The authorized shares of a corporation
A) only reflect the initial capital needs of the company.
B) are determined by the company's Board of Directors.
C) are indicated in its articles of incorporation.
D) must be recorded in a formal accounting entry.

Question

Quizplus · Accepted Answer

The authorized shares of a corporation are specified in its articles of incorporation, which is a document filed with the government to legally form the corporation. This document outlines various aspects of the corporation, including the amount of stock it is authorized to issue.

The Authorized Shares of a Corporation