Which of the Following Does Not Correctly State the Nature

question 91

Multiple Choice

Which of the following does not correctly state the nature or purpose of par value?

• A)Par value is a valuable tool used by both the shareholders and the corporation.
• B)Par value is the minimum level of investment by owners required by law in some states.
• C)The term "stated value" is conceptually equivalent to par value.
• D)Some states permit common stock to be issued without either a par or stated value.

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Definitions:

Nominal Risk-Free

The rate of return on an investment with no risk of financial loss, not adjusted for inflation.

Export Development Canada

A Canadian government agency that provides financing, insurance, and bonding services to Canadian exporters and investors.

Canadian Exports

Goods or services sold by Canada to other countries.

Federal Crown Corporation

A type of corporation in Canada that is federally chartered and owned by the government to conduct various commercial activities and services.