Which of the Following Equity Concepts Would You Expect to Be

question 19

Multiple Choice

Which of the following equity concepts would you expect to be least important to a financial analyst?

• A)par value per share
• B)additional paid-in capital
• C)retained earnings
• D)net common equity

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Definitions:

Doctrine of Constructive Notice

A principle in law whereby individuals are assumed to be aware of their legal rights and obligations, even if they do not possess actual knowledge of them.

Indoor Management Rule

A party dealing with a corporation may assume that the officers have the valid and express authority to bind the corporation.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.

Personal Liability

The legal responsibility of an individual to satisfy debts or obligations from their personal assets when they cannot be met through insurance or other protections.