The Par Value of the Ordinary Share of a Large

question 119

Multiple Choice

The par value of the ordinary share of a large listed corporation:

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

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Definitions:

Absolute Advantage

The ability of an individual, company, or country to produce a good or provide a service more efficiently than competitors, using the same amount of resources.

Economic Basis

refers to the foundational activities, sectors, or resources upon which an economy is built and sustains its growth.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service more efficiently than competitors.

Specialization

The process of focusing on and becoming expert in a particular subject or skill, often resulting in increased efficiency and productivity.