If a Company Issues Par-Value Ordinary Shares, the Balance in Share

question 76

Multiple Choice

If a company issues par-value ordinary shares, the balance in Share Capital - Ordinary will be the

• A) market value of all shares issued.
• B) par value of all shares issued.
• C) market value of all shares authorized.
• D) par value of all shares outstanding.

---

Definitions:

Explicit Costs

Direct, out-of-pocket payments for goods and services required to run a business.

Accounting Profit

Sales minus explicit cost. Implicit costs are not considered.

Perfect Competition

A market structure characterized by many buyers and sellers, homogeneous products, free entry and exit, and perfect information, where no single entity can influence market prices.

Economic Profits

The surplus obtained when a firm’s total revenues exceed both its explicit and implicit costs, providing a full picture of its financial health.