No Minimum Amount of Capitalization Is Necessary Before a Partnership

question 69

True/False

No minimum amount of capitalization is necessary before a partnership may commence business.

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Definitions:

Par Value

A nominal value assigned to share of stock in the charter of a corporation, unrelated to market value.

Legal Expense

Costs incurred in the process of legal advice, litigation, or other legal services.

Paid-In Capital

Funds raised by a company through the sale of its shares to investors, over and above the par value of these shares.

Market Price

The present cost for buying or selling an asset or service in the market.