Which Statement Is False

question 158

Multiple Choice

Which statement is false?

• A)Only a very small percentage of corporations actually sell stock.
• B)Nearly all large companies are corporations.
• C)Nearly all corporations are small companies.
• D)None of these statements is false.

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Definitions:

Par Value

The face value of a bond or the stock value stated in the corporate charter, which is the minimum legal capital per share.

Dividend

A portion of a company's earnings distributed to shareholders, representing a share of the corporate profits.

Noncumulative Preferred Stock

A type of preferred stock where missed dividend payments are not accumulated. Investors are not entitled to claim missed dividends in the future.

Par Common Stock

The face value of common stock as stated in the corporate charter; often a nominal amount that has no relation to its market price.