financial management overview6

financial management overview6 - interest in a corporation....

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Corporate charter and bylaws Answer: b Diff: M i . Which of the following statements is most correct? a. The corporate bylaws are the set of rules drawn up by the state to enable managers to run the firm in accordance with state laws. b. Procedures for electing corporate directors are contained in bylaws, while the declaration of the activities that the firm will pursue and the number of directors are included in the corporate charter. c. Procedures that govern changes in the bylaws of the corporation are contained in the corporate charter. d. Although most companies design a charter, only the bylaws are legally required to be filed with the secretary of state in order for a corporation to be in official existence. e. None of the statements above is correct. Corporate form Answer: d Diff: M ii . Which of the following statements is most correct? a. A hostile takeover is the main method of transferring ownership
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Unformatted text preview: interest in a corporation. b. The corporation is a legal entity created by the state and is a direct extension of the legal status of its owners and managers, that is, the owners and managers are the corporation. c. Unlimited liability and limited life are two key advantages of the corporate form over other forms of business organization. d. In part due to limited liability and ease of ownership transfer, corporations have less trouble raising money in financial markets than other organizational forms. e. Although stockholders of the corporation are insulated by limited legal liability, the legal status of the corporation does not protect the firm’s managers in the same way. i . Corporate charter and bylaws Answer: b Diff: M ii . Corporate form Answer: d Diff: M...
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This note was uploaded on 08/04/2011 for the course COMM 101 taught by Professor Sy during the Spring '11 term at USC.

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financial management overview6 - interest in a corporation....

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