If a Common Stock Has No Par Value

question 6

Multiple Choice

If a common stock has no par value:

• A)there is no way of determining the market value per share.
• B)the stock must have a stated value.
• C)there will not be any additional paid-in capital related to it.
• D)the stockholders do not have a preemptive right.

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Definitions:

Product-Distribution

The process of moving a product from its manufacturing source to its final consumers through various logistical and sales channels.

Trade Name

A commercial name used by a company or business that differs from its legal registered name, under which it conducts business.

Franchise Agreement

A legal contract between a franchisor and franchisee, outlining the terms and conditions for the operation of a franchise.

Parent Company

A corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.