Asked by Jordan Cornelius on May 17, 2024
Verified
The board of directors may issue bonds without the authorization or consent of the shareholders.
Authorization
The official permission or power to do something, often formally granted by a higher authority.
Consent
Voluntary agreement or permission for something to happen or agreement to do something.
- Understand the responsibilities and capabilities of a corporation's board of directors regarding the establishment of stock prices, distribution of shares, and declaration of dividends.
Verified Answer
AH
Alexander HuynhMay 21, 2024
Final Answer :
True
Explanation :
The board of directors has the authority to issue bonds without the consent of the shareholders, as long as it is within their power as outlined in the company's articles of incorporation and bylaws.
Learning Objectives
- Understand the responsibilities and capabilities of a corporation's board of directors regarding the establishment of stock prices, distribution of shares, and declaration of dividends.
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