Ordinary Shareholders Are Essentially

question 24

Multiple Choice

Ordinary shareholders are essentially

• A)creditors of the firm.
• B)managers of the firm.
• C)owners of the firm.
• D)all of the above.

---

Definitions:

Par Value

The nominal value of a bond or stock as declared by the issuer.

Issuance of Bond

The process by which a bond issuer offers bonds to investors to raise capital, typically with terms outlining repayment and interest.

Par Value

Par value is the nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuing company.

Premium on Bonds Payable

This is the amount by which the selling price of a bond exceeds its face value or principal amount, typically because the bond's interest rate is higher than the current market rate.