The Par Value Per Share of Common Stock Represents the

question 78

Multiple Choice

The par value per share of common stock represents the

• A) minimum selling price of the stock established by the articles of incorporation
• B) minimum amount the stockholder will receive when the corporation is liquidated
• C) dollar amount assigned to each share
• D) amount of dividends per share to be received each year

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Definitions:

Incremental Cash Flow

The additional cash flow a business expects to generate from a particular investment or decision.

Annual Salary

The amount of money a person earns from their job in a year.

Contractual Obligation

A legal duty established by a contract between parties, enforceable by law.

Raw Materials Inventory

The stock of materials and components that a company holds for the future production of goods.