The number of shares a corporation has outstanding may exceed the amount of shares authorized. This statement is

The number of shares a corporation has outstanding may exceed the amount of shares authorized. This statement is true.

Step 1: Understand the terms:

• Shares: These represent ownership in a corporation and are typically bought and sold in the stock market.
• Outstanding shares: These are the shares that have been issued by the corporation and are currently held by shareholders.
• Authorized shares: These are the maximum number of shares that a corporation is allowed to issue, as stated in its articles of incorporation.

Step 2: Explanation: The statement suggests that the number of outstanding shares can be greater than the number of authorized shares. This can happen when a corporation issues more shares than initially authorized, either through a stock split or by obtaining approval to increase the authorized share capital.

Step 3: Example: For example, let's say a corporation initially authorizes 1,000 shares. However, due to business growth or other reasons, the corporation decides to issue an additional 500 shares. In this case, the number of outstanding shares would be 1,500, exceeding the initially authorized 1,000 shares.

Step 4: Conclusion: In conclusion, it is possible for the number of shares a corporation has outstanding to exceed the amount of shares authorized. This can occur when a corporation issues more shares than initially authorized, either through a stock split or by obtaining approval to increase the authorized share capital.