Which Activity Will Most Likely Result in an External Benefit

question 18

Multiple Choice

Which activity will most likely result in an external benefit

• A)a student buys a deck of cards to play solitaire in her dorm room
• B)a group of children plant a vegetable garden on a vacant lot in their neighbourhood
• C)an executive purchases a book to read on a business trip
• D)a 10-year-old buys new Nikes with his allowance money he has saved

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Definitions:

Stated Value

A value that is assigned to a share of stock by the issuing company, which may bear no relation to its market value.

Par Value

Par value is the nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

No-Par Common Stock

Shares issued without a par value, meaning their value is determined by the market rather than a set face value.

Stated Value

The nominal value assigned by the company to its no-par stock, which becomes the legal capital per share.