The Par Value of the Common Stock of a Large

question 32

Multiple Choice

The par value of the common stock of a large listed corporation:

• A)Tends to establish a ceiling for the market price of the stock.
• B)Tends to establish a floor for the market price of the stock.
• C)Represents legal capital and is not related to the market price of the stock.
• D)Is increased by net income and decreased by dividends.

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Definitions:

Frustration-Regression Hypothesis

A principle suggesting that when people encounter obstacles to reaching a goal, they may regress to previous behaviors that are comfortable but less productive.

ERG Theory

A motivation theory developed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth.

Social Support

The perception and actuality of assistance and emotional encouragement received from others, which can significantly impact mental health and resilience.

Self-Determination Theory

A psychological framework positing that individuals are motivated to grow and change through three innate psychological needs: competence, relatedness, and autonomy.