Matching
150. Listed below are ten terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the best term placing the letter designating the term in the space provided.
Terms:
a.Additional paid-in capital
b.Articles of incorporation
c.Dividends
d.Organization chart
e.Preferred stock
f.Retained earnings
g.Statement of stockholders’ equity
h.Stock dividends
i.Stock split
j.Venture capital firms
Phrases:
_____ Provide additional financing, often in the millions, for a percentage ownership in the company.
_____ A mixture of attributes somewhere between common stock and bonds payable.
_____ Summarizes the changes in the balance in each stockholders’ equity account over a period of time.
_____ Traces the line of authority for a typical corporation.
_____ The portion of the cash proceeds above par value.
_____ A large stock dividend recorded as a reduction in the par or stated value per share.
_____ Represents all net income, less all dividends, since the company began.
_____ Distributions by a corporation to its stockholders.
_____ Additional shares of the companies’ own stock given to stockholders.
_____ Describes the nature of the firm’s business activities, the shares to be issued, and the composition of the initial board of directors.
151. Match (by letter) the following terms with their definitions. Each letter is used only once.
Terms
|
_____1. Venture capital firms
|
_____2. S Corporation
|
_____ 3. Limited liability company
|
_____4. Angel investors
|
_____5. Publicly held corporation
|
_____6. Double taxation
|
_____7. Articles of Incorporation
|
_____8. Limited liability
|
Definitions
a. Stockholders can lose no more than the amount they invest in the company.
b.Corporate earnings are taxed twice - at the corporate level and individual stockholder level.
c.Like an S corporation, but there are no limitations on the number of owners as in an S corporation.
d.Wealthy individuals willing to risk investment funds on a promising business venture.
e.Allows for legal treatment as a corporation, but tax treatment as a partnership.
f.Has stock traded on a stock exchange such as the New York Stock Exchange (NYSE).
g.Provide additional financing, often in the millions, for a percentage ownership in the company.
h.Describe (a) the nature of the firm’s business activities, (b) the shares to be issued, and (c) the composition of the initial board of directors.