Par value is the minimum cushion of capital established for the protection of
A)investors (stockholders).
B)management.
C)creditors.
D)customers.

Question

Quizplus · Accepted Answer

Par value is the minimum amount of capital that a corporation must have in order to protect the rights of its creditors. It is not intended to protect the interests of investors or management. Additionally, there is no direct relationship between par value and the protection of customers.

Par Value Is the Minimum Cushion of Capital Established for the Protection