R6 M5

Question 1

Generally, which of the following must be contained in a corporation’s articles of incorporation?

I.Names of the initial officers and their terms of office.
II.The name of each incorporator.
III.Provision for the issuance of voting stock.

A.	I and II.
B.	II and III.
C.	II only.
D.	I, II, and III.

Answer 1

Choice “B” is correct. The articles must contain the name of the corporation, the name of its registered agent, the name of its incorporators and stock provisions (specifically including the amount of shares the corporation is authorized to issue and which stock has voting power). Thus, the names of all incorporators and a provision for the issuance of voting stock must by included. The names of the officers are not required.

Question 2

Answer 2

Choice “B” is correct. The articles must contain the name of the corporation, the name of its registered agent, the name of its incorporators and stock provisions (specifically including the amount of shares the corporation is authorized to issue and which stock has voting power). Thus, the names of all incorporators and a provision for the issuance of voting stock must by included. The names of the officers are not required.

Question 3

Directors are authorized to:

Answer 3

Declare dividend.

They cannot individually take decision that fundamentally changes the organization without the approval of the board.