Preferred Products Started Business on March 1, 2012, and Issued

question 135

True/False

Preferred Products started business on March 1, 2012, and issued 100,000 shares of $2 par value common stock at a market price of $50 per share. One year later, the share price had soared to $120. If Preferred Products does a 3-for-1 stock split, the balance sheet will show that there are 200,000 shares issued.

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Definitions:

Work-For-Hire Agreement

A contract where an employer owns the rights to the intellectual property created by an employee or contractor specifically for that employer during the course of employment or commission.

American Arbitration Association

A non-profit organization offering alternative dispute resolution services, including arbitration and mediation, to individuals and organizations.

Mediator

The third party in mediation whose job is to convince the contending parties to adjust or settle their dispute.