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NEW QUESTION: 1
The par value of a common stock represents
A. the amount that must be recorded on the issuing corporation's record as paid-in capital.
B. the estimated market value of the stock when it was issued.
C. the liability ceiling of a shareholder when a company undergoes bankruptcy proceedings.
D. none of these answers.
E. the total value of the stock that must be entered in the issuing corporation's records.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Par value represents a stock's legal capital. It is an arbitrary value assigned to stock before it is issued. Par value represents a shareholder's liability ceiling because, as long as the par value has been paid in to the corporation, the shareholder obtains the benefits.
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Answer: A,C
NEW QUESTION: 3
A. 1000 bindings
B. 5000 bindings
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D. 2000 bindings
Answer: C
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