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3 years ago

Which document determines the number of shares a company can sell?

Social Studies

2 answers:

MatroZZZ [7]3 years ago

7 0

The correct option is (C).

A corporate charter is a document that determines the number of shares a company can sell.

Further Explanation:

Corporate charter:

Corporate charter or “charter,” also known as articles of incorporation which is a written document in Canada and the United States. The document specifies the details regarding the company’s specifics such as its objectives, and other information.

Justification for the correct and incorrect option:

A stock prospectus: This option is incorrect.

The stock prospectus is a document that specifies the details regarding the investment offering to the public.

An annual bill of rights: This option is incorrect.

The bill of rights is a bill of 10 amendments to the constitution. The bill guarantees the rights to the individuals.

A corporate charter: This option is correct.

The corporate charter, which is also known as charter, determines the objectives of the company, like the number of shares a company can sell, and many more.

An annual report: This option is incorrect.

The annual report is a report on a company’s previous year's details of the activities during a year. The annual reports are beneficial for the public who wants to know the financial statements and records of the company.

Therefore, a corporate charter is a document that specifies the details of a company like determining the number of shares a company can sell in Canada and the United States.

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Answer Details:

Grade: High school

Chapter: Shares and stock

Subject: Accounting

Keywords:

Which document determines the number of shares a company can sell, a stock prospectus, an annual bill of rights, a corporate charter, and an annual report, document, objectives of a company.

weqwewe [10]3 years ago

4 0

The document that determines the number of shares a company can sell is C) a corporate charter. This document, issued by the founders of a corporation and approved by the government, describes in detail all the major components of it, including a declaration of the maximum number of shares the company will be legally authorized to sell.

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