The correct answer is: A. is always fully paid
A share of stock is a unit of ownership in a company. When you buy a share of stock, you become a part-owner of the company. The number of shares that a company has is called its “authorized share capital.” The company can issue shares up to the authorized share capital.
When a company issues shares, it can either issue them for cash or for other consideration, such as property or services. If the company issues shares for cash, the shareholders are said to have paid in full for their shares. However, if the company issues shares for other consideration, the shareholders may not have paid in full for their shares.
For example, let’s say that a company issues 100 shares for \$10 per share. If all of the shares are issued for cash, then the company will receive \$1,000 from the shareholders. However, if the company issues 50 shares for \$10 per share and 50 shares for a piece of property worth \$500, then the company will only receive \$500 from the shareholders.
In this case, the shareholders who paid cash for their shares have paid in full, but the shareholders who received shares in exchange for the property have not paid in full.
Therefore, the statement “A share of stock is always fully paid” is not always correct.