Which of the Following Statements,regarding No-Par Stock,is Incorrect

question 128

Multiple Choice

Which of the following statements,regarding no-par stock,is incorrect?

• A) Regardless of the stock's issue price, Cash is debited and Common Stock is credited for the cash received.
• B) There can be no Paid-In Capital in Excess of Par.
• C) There is no par to be in excess of.
• D) All of the statements are correct.

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Definitions:

Reasonable Reliance

The expectation that a party can depend on the statements or promises of another, often a factor in legal cases involving contracts or fraud.

Liability

The legal responsibility for one's actions or the obligation to compensate for harm or losses caused to another party.

Fraud

The intentional deception or dishonesty by an individual or entity, with the purpose of gaining some unfair or unlawful advantage or causing some unjust loss or harm to another party.

Misrepresentation

The act of providing false, misleading, or incorrect information, intentionally or negligently, during a transaction or contract.