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

Question

Quizplus · Accepted Answer

The authorized shares of a corporation are indicated in its charter, which is the legal document that establishes the corporation and outlines its basic details, including the amount of stock it is authorized to issue.

The Authorized Shares of a Corporation