Which of the Following Is an Element of a Good

question 104

Multiple Choice

Which of the following is an element of a good institution?

• A)High corruption.
• B)Strong redtape.
• C)Strong democracy.
• D)A large government size.
• E)A closed economy.

---

Definitions:

Stated Value

The nominal value assigned to no-par stock by the issuing company's board of directors.

Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health and operational efficiency.

No-par Stock

Stock issued without a par value specified in the corporate charter or on the stock certificate.

Minimum Legal Capital

The least amount of capital that a company is required to maintain by law, to protect creditors from the company's liabilities.