What does 'Substantially All' refer to?

• Assets that are not used

• Assets necessary for business operations

• All assets of the corporation

• Assets that are sold

What is required for board approval of an extraordinary sale?

• Majority of the entire board

• Unanimous consent

• Approval from the SEC

• Two-thirds of the stockholders

What is the minimum stockholder approval required for an extraordinary sale?

• All stockholders must approve

• Two-thirds of the outstanding capital stock

• One-half of the stockholders

• Majority of the board only

What must be provided in the notice for a meeting?

• Only the date and time

• Only the purpose of the meeting

• Time, place, and purpose of the meeting

• No notice is required

What is a stock corporation generally prohibited from doing?

• Issuing dividends

• Selling shares to the public

• Acquiring its own shares

• Investing in other corporations

What is one exception that allows a corporation to acquire its own shares?

• To increase stock price

• To eliminate fractional shares

• To reduce capital

• To pay dividends

What must be used to purchase shares back?

• Unrestricted retained earnings

• Restricted retained earnings

• Loan funds

• Capital stock

What is a condition for a corporation to acquire its own shares?

• Approval from the SEC

• Sufficient retained earnings

• Majority stockholder approval

• No restrictions on capital

What is a power of a corporation regarding dividends?

• Declare dividends from capital stock

• Declare dividends at any time

• Declare dividends only from unrestricted retained earnings

• Declare dividends without board approval

What type of dividends are paid in cash?

• Asset dividends

• Cash dividends

• Stock dividends

• Property dividends