The Model Business Corporation Act:
A)Uses the word "common" and "preferred" in describing distinguishing characteristics of stock.
B)Defines legal capital as the amount of net assets not available for distribution to shareholders.
C)Provides guidance for choosing an appropriate par value for new issues of stock.
D)Has affected the laws of most states.

Question

Quizplus · Accepted Answer

The Model Business Corporation Act has had a significant impact on corporate law in the United States, and it has been adopted in whole or in part by many states. Choices A, B, and C are examples of specific provisions within the Act, but they do not fully capture the Act's overall influence on corporate law.