Which term refers to the governance document that outlines the internal rules and voting procedures for a limited company?

Prepare for the IB Business and Management SL Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Get ready for success!

Multiple Choice

Which term refers to the governance document that outlines the internal rules and voting procedures for a limited company?

Explanation:
Articles of Association define how a limited company is run, laying out the internal rules and voting procedures that govern shareholders and directors. This document acts as the company’s governing framework, detailing who can vote, how meetings are held, how decisions are made, and the rights of shareholders. The other options serve different purposes: the Certificate of Incorporation is the legal document that registers the company and creates its existence, a Deed of Partnership relates to partnerships rather than limited companies, and Charities refers to nonprofit organizations, not the governance rules of a limited company.

Articles of Association define how a limited company is run, laying out the internal rules and voting procedures that govern shareholders and directors. This document acts as the company’s governing framework, detailing who can vote, how meetings are held, how decisions are made, and the rights of shareholders. The other options serve different purposes: the Certificate of Incorporation is the legal document that registers the company and creates its existence, a Deed of Partnership relates to partnerships rather than limited companies, and Charities refers to nonprofit organizations, not the governance rules of a limited company.

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