When a Corporation Sells 9,000 Shares of $12 Par Value

question 2

True/False

When a corporation sells 9,000 shares of $12 par value common stock for $159,000,Common Stock is credited for $108,000.

Discriminate between spin-off firms and original firms.

Identify examples of technological breakthroughs from government or university labs.

Understand funding sources for R&D in corporations.

Explain the decision-making process related to R&D investment.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Common Stock

Common stock represents ownership shares in a corporation, giving holders voting rights and the potential to receive dividends.

Long-term Investment

Investments held for an extended period, typically more than one year, with the intention of earning returns over time.

Dividends receivable

Dividends declared and owed to a shareholder but not yet paid.