Asked by LaSaundra Duncan on Jul 18, 2024
Verified
When no-par value stock does not have a stated value the entire proceeds from the issuance of the stock becomes legal capital.
No-Par Value Stock
Capital stock that has not been assigned a value in the corporate charter.
Legal Capital
The minimum amount of capital that a corporation is required to maintain, as mandated by corporate laws, to protect creditors.
- Acquire knowledge about the steps and limitations related to the allocation of corporate shares.
- Comprehend the fundamental framework and varieties of capital stock within a corporation.
Verified Answer
JF
Justin FloydJul 24, 2024
Final Answer :
True
Explanation :
When no-par value stock does not have a stated value, the entire proceeds from the issuance of the stock become legal capital, as there is no specific amount designated as share capital.
Learning Objectives
- Acquire knowledge about the steps and limitations related to the allocation of corporate shares.
- Comprehend the fundamental framework and varieties of capital stock within a corporation.
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