How Much Must a Shareholder Who Signs a Stock Subscription

question 36

Multiple Choice

How much must a shareholder who signs a stock subscription pay for no-par shares?

• A) The depreciated value
• B) The value on the last sale
• C) The value as set by the board of directors
• D) The value as voted upon by shareholders
• E) The fair market value of the shares

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Definitions:

Severely Intoxicated

A state of being under the influence of alcohol or drugs to a degree that significantly impairs one's mental and physical functions.

Disaffirmed

The act of denying, refusing to recognize, or invalidating an agreement or contract, especially in cases where one party lacks the capacity to enter into the agreement.

Mental Faculties

The cognitive functions and capabilities of the mind, including perception, reasoning, judgment, and memory.

Disaffirm Contract

The legal act of declaring a contract void and freeing all parties from their obligations under it.