When a Corporation Issues No Par Value Stock, the Entire

question 7

True/False

When a corporation issues no par value stock, the entire consideration received constitutes stated capital except that amount allocated in a manner permitted by law to capital surplus or paid-in surplus.

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Definitions:

Citizenship

The status of being recognized as a legal member of a specific country, with associated rights and responsibilities.

Void

Having no legal force or effect; not valid or legally binding.

Ultra Vires

Acts performed outside or beyond the powers of the legal authority or corporation’s capabilities.

Consideration

Something of value that is exchanged between parties in a contract, making the agreement legally binding.