Which of the Following Statements About Par Value Is FALSE

question 124

Multiple Choice

Which of the following statements about par value is FALSE?

• A)The par value per share is used to determine the dividends per share for common stock.
• B)The stated value of a stock is conceptually similar to the par value of a stock.
• C)It is generally illegal for a corporation to sell an original issue of common stock below the par value.
• D)The par value is the maximum legal liability of stockholders if the corporation cannot pay its debts.

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Definitions:

Stable Diene

A type of organic compound with two double bonds that exhibits stability in its structure and reactivity.

Cycloalkenes

Unsaturated hydrocarbons containing one or more carbon-carbon double bonds within a cyclic structure.

Unstable

A state of a chemical compound where it has the potential to change or react under certain conditions, often leading to a more energetically favorable state.

Zaitsev's Rule

A rule in chemistry that predicts the preferred alkene product in elimination reactions, favoring the formation of the more substituted alkene.