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AICPA CPA-Business Exam - Topic 3 Question 89 Discussion

Actual exam question for AICPA's CPA-Business exam
Question #: 89
Topic #: 3
[All CPA-Business Questions]

Which of the following actions may be taken by a corporation's board of directors without stockholder approval?

Show Suggested Answer Hide Answer
Suggested Answer: D

Choice 'd' is correct. Shipping costs (which are selling costs) would not be considered a carrying cost associated with inventory.

Choices 'a', 'b', and 'c' are incorrect. Each of the following would be considered a carrying cost associated with inventory.

A Insurance costs.

B Cost of capital invested in the inventory.

C Cost of obsolescence.


by Maricela at Jun 02, 2024, 12:39 AM

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Lashawn
3 months ago
Amending articles without a vote? That's surprising!
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France
3 months ago
I thought dissolving needed approval.
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Lonny
3 months ago
True, it's all about the board's authority.
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Delfina
4 months ago
Wait, really? That seems unfair!
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Garry
4 months ago
A board can sell assets without stockholder approval.
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Keena
4 months ago
I definitely remember that dissolving the corporation usually needs stockholder approval, but I’m confused about the asset sales.
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Eleonora
4 months ago
I feel like purchasing assets might be something the board can do on its own, but I can't recall the specifics.
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Mayra
4 months ago
I remember practicing a question about amending articles of incorporation, and I think that usually requires stockholder approval, right?
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Fidelia
5 months ago
I think the board can sell assets without stockholder approval, but I'm not entirely sure if it applies to "substantially all" of them.
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Monte
5 months ago
I'm a bit unsure on this one. I know the board has more flexibility on some actions, but I'll need to double-check the specifics to make sure I select the right answer.
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Rasheeda
5 months ago
Hmm, this one seems a bit tricky. I'll need to carefully review the options and think through the legal requirements for each type of corporate action.
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Oneida
5 months ago
I think the key here is to focus on the actions that can be taken by the board of directors without stockholder approval. That's the key distinction we need to identify.
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Barb
5 months ago
Okay, I've got this. The board can purchase assets of another company without stockholder approval, but they need approval to sell substantially all of their own assets or dissolve the company. Amending the articles also requires stockholder approval.
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Dorathy
5 months ago
Okay, let me see here. I think the key is to consider how Person Accounts might impact the existing data and sharing model.
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Minna
5 months ago
I have a feeling that focusing solely on financial KPIs is definitely wrong. Integrated reporting seems to be more holistic than that.
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Tandra
5 months ago
Hmm, I'm not entirely sure about this one. I'll need to think it through carefully to make sure I understand the requirements for configuring Okta AD Agents.
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Elenor
5 months ago
I'm a little confused by this question. The diagram doesn't seem to show any many-to-many relationships, so I'm not sure if option C is the right answer. I'll need to re-read the question and think it through more carefully.
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Oliva
5 months ago
I remember that Customer Care was definitely included, but I'm a bit torn on whether to pick A or C. I think it also had to do with Conferencing.
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Geoffrey
10 months ago
The board's trying to pull a fast one, huh? Guess they think they're the corporate version of the Harlem Globetrotters or something.
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Rosina
8 months ago
C) Dissolving the corporation.
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Sharee
8 months ago
B) Selling substantially all of the corporation's assets.
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Martina
9 months ago
A) Purchasing substantially all of the assets of another corporation.
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Mona
10 months ago
This is a classic case of the board trying to pull a fast one on the shareholders. I'm going with option D - they can't amend the articles without approval!
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Mickie
9 months ago
I'm not sure about that, but I know they can't sell substantially all of the corporation's assets without approval.
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Marquetta
9 months ago
I think they can also dissolve the corporation without stockholder approval.
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An
9 months ago
I agree with you, the board shouldn't be able to amend the articles without approval.
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Mariann
10 months ago
I know the board has a lot of power, but they can't just do whatever they want without the shareholders having a say. I'd go with option C as the correct answer.
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Skye
9 months ago
A: It's important for shareholders to understand the limits of the board's power.
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Esteban
9 months ago
B: I agree, the board definitely has the authority to make that decision.
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Dana
9 months ago
A: I think option C is correct. The board can dissolve the corporation without stockholder approval.
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Loise
10 months ago
Hmm, I think option B is the right answer here. The board can sell assets, but they need shareholder approval for the big stuff like dissolution or changing the articles.
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Cyril
8 months ago
Option C is definitely out. Dissolving the corporation would need shareholder consent.
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Francis
8 months ago
I'm not sure about option A. Purchasing assets may require shareholder approval depending on the scale.
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Kris
8 months ago
I think option D is also a valid choice. Amending the articles of incorporation is within the board's authority.
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Vivienne
10 months ago
I agree, option B seems correct. Shareholder approval is needed for major decisions.
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Shanda
10 months ago
This seems tricky. I'm pretty sure the board can sell assets without approval, but dissolving the company or amending the articles would require shareholder approval.
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Lauryn
9 months ago
B) Selling substantially all of the corporation's assets.
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Ruby
10 months ago
A) Purchasing substantially all of the assets of another corporation.
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Andree
10 months ago
But what about amending the articles of incorporation? Can the board do that without stockholder approval?
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Coletta
11 months ago
I agree with you, Rashad. Dissolving the corporation is a major decision that the board can make on its own.
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Rashad
11 months ago
I think the board can dissolve the corporation without stockholder approval.
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