What is the difference between par value and market value? Which is the better indicator of the true worth of the stock?
Par value is an arbitrary amount stated on the face of the stock certificate and is needed to satisfy legal requirements. Market value is the amount that each share of stock is selling for on the market. Market value is the better indicator since par value is chosen only to establish a minimum legal liability.
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A. should never be revised. B. supplies guidelines for general situations but not for situations where managers face difficult decisions. C. should embrace everything rather than focusing only on a few key goals. D. substitutes for more specific objectives. E. sets out the organization's basic purpose for being.
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Indicate whether the statement is true or false
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A. Choice A B. Choice B C. Choice C D. Choice D E. Choice E