The following is a list of terms and definitions associated with equity: 1. Preemptive right 2. Sole

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The following is a list of terms and definitions associated with equity:
1. Preemptive right
2. Sole proprietorship
3. Right to dividends
4. Public corporation
5.
Right to residual assets
6. Par value
7.
Right to vote
8. Contributed capital
a. Ensures that stockholders receive a proper portion of assets upon liquidation.
b. Ensures that stockholders can participate in the company they own.
c. Ensures that stockholders can maintain their ownership percentage when new shares are issued.
d. Ensures that stockholders receive a proper portion of dividends paid.
e. An arbitrary value that determines an entity's legal capital.
f. A corporation whose stock is available to the public at large.
g. A form of business with one owner.
h. The equity generated through the sale of capital stock.
Required
Match each term with the appropriate definition.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Financial ACCT2

ISBN: 978-1111530761

2nd edition

Authors: Norman H. Godwin, C. Wayne Alderman

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