15
QuizMultiple Choice

Business Structures — Quiz

Question 15 • Personal Finance and Economics

Which document determines the number of shares in a company?

Answer
A
an annual report
B
a stock prospectus
C
an annual bill of rights
D
a corporate charter

Explanation

A corporation’s charter, also called its articles of incorporation, establishes key details about the company, including the number of shares it is authorized to issue. A stock prospectus describes an investment offering, while an annual report summarizes the company’s yearly performance. Therefore, the corporate charter determines the number of shares.

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