29

1. The corporate officers of FlashFire, Inc have decided that they need to sell an additional 50,000 shares in order to finance the goals set by the Board of Directors.The officers:

a.can sell the shares only if the shares have a par value which is close to the market value.

b.are limited by the number of shares authorized by the Articles,but can amend the Articles to increase the allowed number if the Board and shareholders approve this action.

c.can sell as many shares as the market will bear.

d.cannot sell the additional shares unless they were authorized initially in the Articles.

question 33

KIrbysubscribed to purchase 100 shares to be issued ofEvoCorp, an already existing corporation.EvoCorp accepted the subscription.The price set for the subscription was $10 per share.The par value of the stock was $8 per share.When the time came to purchase the shares, Kirby paid only $6 per share, claiming it reflected the fair market value of the shares.EvoCorp delivered the shares and Kirby refusedEvoCorp'sdemand for an additional $4 per share.Is Kirby liable for the full subscription price of the shares?

a.No,but Kirby is liable for another$2per share.

b.No,because regardless of what the subscription price was,no one can be forced to pay more than fair market value for shares.

c.Yes,becauseEvoCorp'sdelivery of the sharessignalledits right to obtain the full subscription price for the shares.

d.Yes,because regardless of the fair market value,a subscriber is liable for stock issued at less than the par value of shares.