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BEC Real Exam Dumps DEMO

Question 1: The president of a company has signed a $10 million contract with a construction company to
build a new
corporate office. Which of the following corporate documents sets forth the scope of authority under
which
this transaction is governed?
A. Certificate of Incorporation.
B. Charter.
C. Bylaws.
D. Proxy statement.
Correct Answer: C
Explanation:
Choice "c" is correct. The bylaws usually contain the rules for running the corporation. Choices "a"
and "b"
are incorrect. These are possible choices, but not as good an answer as "c". A corporation's articles of
incorporation (called a charter in a few states) must set out certain information relevant to formation
of the
corporation, but it may include any other information that it is not illegal. However, usually details
about
intracorporate power are set out in bylaws rather than in the articles or charter.
Choice "d" is incorrect. A proxy statement is a request to shareholders to allow their shares to be
voted by
a specified person in a specified way. It has nothing to do with a corporate president's authority.
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