Which of the Following Statements Is Not True About the Par

question 94

Multiple Choice

Which of the following statements is not true about the par value of common stock?

• A)The par value is not the same as the market value of the stock.
• B)The par value is a nominal amount identified in the corporate charter.
• C)The par value is the amount credited to the common stock account when the stock is issued.
• D)The par value is the amount credited to common stock when treasury stock is reissued.

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Definitions:

Foreign Demand

The desire and willingness of buyers in other countries to purchase goods and services from a particular nation.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specified period.

Motorcycle Imports

Refers to the bringing in of motorcycles from foreign countries into a domestic market usually subject to tariffs, quotas, and regulations.

Quantity Imported

This refers to the total amount of goods brought into a country from abroad for commercial purposes.