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.

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Definitions:

Basket of Goods

A representative collection of products and services used to monitor price changes and inflation over time.

Interest Rates

A finance charge expressed as an annual rate of return or the annual cost of credit or loan, which reflects the time value of money.

Currency Depreciate

A decrease in the value of a currency relative to other currencies in the foreign exchange market.

Currency Appreciate

The increase in the value of one currency relative to another in the exchange rate markets.