After a Corporation Issues Stock,the Stock

question 58

Multiple Choice

After a corporation issues stock,the stock

• A)cannot be resold.
• B)can be resold only if the corporation wants to buy it back.
• C)can be resold on exchanges;the resale will raise additional funds for the corporation.
• D)None of the above are correct.

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Definitions:

Limited Liability Company

An organizational form blending the direct tax system of a sole proprietorship or partnership with the reduced liability features of a corporation.

Cost Concept

An accounting principle that states all assets and services purchased by a company should be recorded at their cost price.

Market Value

The present rate at which a service or asset may be purchased or sold in the market.

Accounting Records

Documents and books that keep systematic financial data and transactions of a person, company, or entity.