Chapter 10, Problem 10.23AE

(Learning Objective 1: Identify key terms associated with corporations) Complete each of the following statements with one of the terms listed here.

Beard of directors	Charter	Common stock
Corporation	Legal capital	Limited liability
Liquidation	Par value	Preemption
Preferred stock	Retained earnings	Stockholders’ equity

1. a. The right to maintain one’s proportionate ownership in the corporation is the right of _____.
2. b. The right to receive a proportionate share of any assets remaining after the corporation goes out of business, sells its assets, and pays off its liabilities is the right of _____.
3. c. The stockholders’ ownership interest in the assets of the corporation is called _____.
4. d. _____.is the legal concept that means stockholders can lose no more than the cost of their investment in the company.
5. e. The authorization from the state to issue a certain number of shares of stock is granted through the corporation’s _____.
6. f. The arbitrary amount assigned to each share of stock when it is originally authorized is its _____.
7. g. _____.is a hybrid form of capital stock resembling both equity and debt that pays a fixed dividend.
8. h. _____.is the basic form of capital stock.
9. i. The _____.is elected by stockholders.

j. The business entity formed under state law that has a separate legal identity from its owners is a ___ .

k. The total of the par value of all of the shares issued is the corporation's ___ .

I. ___ represents the amount of stockholders' equity that the corporation has earned through profitable operations less any

dividends declared.