an entity created by law that is separate from its owners and has most of the rights and privileges granted to individuals.
What is a corporation.
100
a general term that refers to any shares issued to obtain capital.
What is capital stock.
100
stock not assigned a value per share by the corporate charter which can be issued at any price without the possibility of a minimum legal capital deficiency.
What is no-par value stock
100
a distribution of additional shares of the corporation's own stock to its stockholders without the receipt of any payment in return.
What is a stock dividend.
100
is the distribution of additional shares to stockholders according to their percent ownership.
What is a stock split.
200
Stockholders are neither liable for corporate acts nor corporate debt because they have ......
What is Limited Liablility
200
the number of shares that a corporation's charter allows it to sell.
What is authorized stock
200
the total amount of cash and other assets the corporation receives from its stockholders in exchange for common stock.
What is paid-in capital.
200
a distribution of 25% or less of previously outstanding shares and is recorded by capitalizing retained earnings for an amount equal to the market value of the shares to be distributed.
What is a small stock dividend.
200
is a type of stock that has special rights that give it priority over common stock in one or more areas.
What is preferred stock.
300
An elected group of people that have ultimate control of a corporation
What is the board of directors.
300
the price at which a stock is bought and sold.
What is market value per share.
300
the cumulative net income retained by a corporation.
What is retained earnings.
300
a distribution of more than 25% of previously outstanding shares and is recorded by capitalizing retained earnings for the minimum amount required by state law governing the corporation.
What is a large stock dividend.
300
market value per share/earnings per share
What is price-earnings ratio
400
When a corporation has only one type of stock, it is identified as
What is common stock.
400
an amount assigned per share by the corporation in its charter which establishes the minimum legal capital.
What is par value stock.
400
occurs when a corporation sells its stock for more than par (or stated) value.
What is a premium on stock.
400
a distribution of cash to stockholders providing investors a return and affecting the stock's market value is
What is a cash dividend.
400
annual cash dividends per share/market value per share
What is dividend yield.
500
A corporation's life continues indefinitely because it is not tied to the physical lives of its owners because it has ____________________
What is continuous life.
500
refers to the least amount that the buyers of stock must contribute to the corporation or be subjet to paying at a future date.
What is minimum legal capital.
500
occurs when a corporation sells its stock for less than par (or stated) value.
What is discount on stock.
500
A dividend payment involves three important dates known as
What is the date of declaration, date of record, and date of payment.
500
net income - preferred dividends/weighted-average common shares outstanding