Complete each of the following statements with one of the terms listed here.

a. _________ represents the amount of stockholders’ equity that the corporation has earned through profitable operations less any dividends declared.

b. The owners of the corporation are called _________ .

c. One disadvantage of the corporate form of organization is _________ .

d. _________  is a hybrid form of capital stock resembling both equity and debt that pays a fixed dividend.

e. The basic unit of ownership for a corporation is one _________ .

f. The authorization from the state to issue a certain number of shares of stock is granted through the corporation’s _________ .

g. 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 _________ .

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

i. The amount of stockholders’ equity that the stockholders have contributed to the corporation is called _________ .

j. The arbitrary amount assigned to each share of stock when it is originally authorized is its _________ .

k. _________  is the legal concept that means stockholders can lose no more than the cost of their investment in the company.

l. The right to maintain one’s proportionate ownership in the corporation is the right of _________ .

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Charter Corporation Double taxation Limited liability Liquidation Paid-in capital Par value Preemption Preferred stock Retained earnings Share of capital stock Stockholders