If No-Par Stock Is Issued Without a Stated Value Then

question 142

Multiple Choice

If no-par stock is issued without a stated value then

• A) the par value is automatically $1 per share.
• B) the entire proceeds are considered to be legal capital.
• C) there is no legal capital.
• D) the corporation is automatically in violation of its state charter.

Comprehend the impact of profitability on default risk.

Recognize the tax implications of debt financing.

Acknowledge the expectation of positive operating cash flows and its significance.

Understand the investment strategies and constraints for mature companies.

---

Definitions:

Concentrated Capital

Concentrated capital refers to wealth or assets that are controlled by a small number of individuals or companies, often leading to economic inequality and monopolistic practices.

Class Warfare

A concept referring to the conflict between different classes in society, often highlighting the struggle between those who have wealth and power and those who do not.

Social Thinkers

Intellectuals who analyze, discuss, and theorize about various aspects of society, including its structures, systems, and dynamics.

American Citizenship

Refers to the status of being a legal member of the United States of America, which grants an individual certain rights and responsibilities.