The Total Amount of Cash and Other Assets Received by a Corporation

question 164

Multiple Choice

The total amount of cash and other assets received by a corporation from its stockholders in exchange for common stock is:

• A)Always equal to its par value.
• B)Always equal to its stated value.
• C)Referred to as contributed capital.
• D)Referred to as retained earnings.
• E)Always below its stated value.

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Definitions:

Brokering Agent

An intermediary or facilitator between a buyer and a seller, helping to negotiate transactions or agreements.

Cash and Carry Wholesaler

A type of wholesaler that operates by selling goods for cash and where the buyer carries away the goods immediately.

Merchant Wholesaler

An intermediary entity that buys goods in bulk from manufacturers to resell them to retailers or other buyers, typically without modifying the goods.

Utilities Offered

Basic services provided to consumers and businesses, such as water, electricity, gas, and telecommunications.