Which of the following is incorrect with regard to treasury shares?
A) No dividends may be paid on treasury shares.
B) They are issued but not outstanding.
C) A corporation may sell treasury shares for any amount the board of directors determines,even if the shares have a par value that is more than the sale price.
D) The concept of treasury stock was created by the MBCA and is carried forward in the RMBCA.

Question

Quizplus · Accepted Answer

The concept of treasury stock predates the Model Business Corporation Act (MBCA) and is not specific to any particular state corporation law. It is a well-established concept in corporate law.

Which of the Following Is Incorrect with Regard to Treasury