An Arbitrary Value Assigned to Shares of Capital Stock and Approved

question 55

Multiple Choice

An arbitrary value assigned to shares of capital stock and approved by the state when the business is incorporated is referred to as:

• A)par value
• B)book value
• C)stated value
• D)market value

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Definitions:

Sales Tax

A tax imposed by a government on sales of goods and services, typically calculated as a percentage of the sale price.

Deadweight Loss

An economic inefficiency that occurs when a market does not reach equilibrium, leading to a loss of total social welfare.

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the total amount they actually pay.

Deadweight Loss

The decrease in economic productivity that happens when a good or service does not reach, or cannot reach, its equilibrium point.