Which of the Following Is True for a Corporation That

question 8

Multiple Choice

Which of the following is true for a corporation that issues 1,000 shares of $2 par common stock at $5 per share?

• A)The common stock account will increase by $5,000.
• B)$2 per share is the maximum selling price for these shares of stock.
• C)Total stockholders' equity will increase by $5,000.
• D)The per share dividend amount on these shares is $2.

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Definitions:

Polymorphic

In computing, it refers to the ability of objects to process data differently based on their data type or class; in biology, it indicates the occurrence of two or more clearly different morphs or forms.

Monomorphic

Characterized by having a single shape or form, often used in the context of genes or polymorphism.

Reactance

A psychological response wherein individuals feel the need to regain freedom or control when they perceive it as being taken away.

Independence

The state or quality of being self-reliant and free from outside control, capable of making decisions and acting on one's own.