1.
1. Match the items below by entering the appropriate code number in the space provided.
(Points : 5)
Potential Matches:
1 : The amount assigned to each share of stock in the corporate charter.
2 : Net income retained in the corporation.
3 : Creditors only have corporate assets to satisfy their claims.
4 : Responsible to stockholders for corporate activity.
5 : Corporation's own stock that has been reacquired by the corporation but not retired.
6 : Enables stockholders to maintain their same percentage ownership when new shares are
issued.
7 : Unit of ownership in a corporation.
8 : The amount that must be retained in the business for the protection of creditors.
9 : Preferred stockholders have a right to receive current and unpaid prior-year dividends before
common stockholders receive any dividends.
10 : Total amount paid-in on capital stock.
Solution
1) Par value
2) Retained earnings
3) Preemptive right
4) Board of directors
5) Treasury stock
6) Legal capital
7) Capital stock

2.
8) Limited liability
9)Â Â Cumulative
10) Paid in capital