If No-Par Stock Is Issued Without a Stated Value, Then

question 111

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:

Mistake Of Fact

(1) A mistake that is not caused by the neglect of a legal duty by the person committing the mistake but, rather, consists of unconscious ignorance of a past or present material event or circumstance. (2) An affirmative defense in which the defendant tries to prove that she or he made an honest and reasonable mistake that negates the guilty-mind element of a crime.

Divorce Agreement

A legally binding document outlining the resolution of matters concerning divorce, including asset division, alimony, and child custody.

Fraudulent Misrepresentation

A false statement made knowingly to deceive another party, leading them to enter into a contract or agreement.

Assertion

An assertion is a confident and forceful statement of fact or belief.