Which of the following types of owners' equity transactions would require authorization by the board of directors?

Question

Quizplus · Accepted Answer

All three types of owners' equity transactions - issuance of capital stock, repurchase of capital stock, and declaration of dividends - are significant financial decisions that can impact the long-term financial stability and performance of the company. As a result, they typically require formal authorization by the board of directors, who are responsible for overseeing the management and strategic direction of the organization. The board of directors is also responsible for ensuring that the company complies with legal and regulatory requirements, such as securities laws and corporate governance guidelines, when issuing or repurchasing capital stock or declaring dividends. Therefore, all of the above options would require authorization by the board of directors.

Which of the Following Types of Owners' Equity Transactions Would