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Commerce · Q933

Financial Management

Graduate and Post Graduate · Commerce · question 933

Q933

Set of rules made by corporation founders such as directors election procedure are classified as

A.
stock laws
B.
by laws
Answer
C.
liability laws
D.
corporate laws

Answer: Option B

Solution

Answer: Option B
Solution:
Set of rules made by corporation founders such as directors election procedure are classified as by laws. Corporate bylaws (sometimes spelled "by-laws") are the rules of a corporation, established by the board of directors during the process of starting a corporation. When a corporation is formed (a process called incorporation), one of the first tasks of the new corporation is to have corporate bylaws formed.