When Common Stock Has a Par Value

question 21

Multiple Choice

When common stock has a par value:

• A)the liability of the stockholders is limited to the par value.
• B)there will probably be additional paid-in capital on the balance sheet.
• C)the market value of the stock will be higher than if there is no par value.
• D)the paid-in capital will equal the par value of the number of shares issued.

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Definitions:

Spherical Symmetry

A form of symmetry where an object appears the same from any point of view, characteristic of some molecules.

P Orbitals

Atomic orbitals that are dumbbell-shaped, indicating the regions where electrons can be found, involved in forming pi bonds.

Electron Shell

A grouping of electrons surrounding the nucleus of an atom, where electrons are most likely to be found.

Node

A point in a standing wave where the wave has minimal amplitude, or in an atomic context, a point of zero probability of finding an electron.