The charter of a corporation provides for the issuance of 100,000 shares of common stock.Assume that 75,000 shares were originally issued and 5,000 were subsequently reacquired.What is the number of shares outstanding?

Question

Quizplus · Accepted Answer

The number of shares outstanding is calculated by subtracting the number of shares reacquired from the total number of shares issued. Therefore, 100,000 - 5,000 = 95,000 total shares issued, and 95,000 - 75,000 = 20,000 shares outstanding. However, the question asks specifically for the number of shares outstanding after the reacquisition, so the answer is only the number of outstanding shares, which is 75,000 - 5,000 = 70,000 shares. Therefore, the best choice is B.

The Charter of a Corporation Provides for the Issuance of 100,000