When Common Stock Has a Par Value

question 21

Multiple Choice

When common stock has a par value:

• A)the liability of the stockholders is limited to the par value.
• B)there will probably be additional paid-in capital on the balance sheet.
• C)the market value of the stock will be higher than if there is no par value.
• D)the paid-in capital will equal the par value of the number of shares issued.

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Definitions:

Xerophthalmia

A medical condition characterized by dry eyes, which can lead to damage to the cornea and conjunctiva.

Conjunctiva

A thin, clear membrane lining the eyelid and covering the white part of the eyeball, responsible for keeping the eye moist.

Dryness

A condition characterized by a lack of moisture or water.

Emmetropia

A state of normal vision where the eyes can focus images directly on the retina, resulting in clear vision at all distances.