3
QuizMultiple Choice

Business Structures — Quiz

Question 3 • Personal Finance and Economics

Which document determines the number of shares in a company?

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

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.

AI-written and checked against the verified answer.

Previous
Next