1. Match the items below by entering the appropriate code number in the space provided. (Points : 5) Solution 1) Par value 2) Retained earnings 3) Preemptive right 4) Board of directors 5) Treasury stock 6) Legal capital 7) Capital stock 8) Limited liability 9)   Cumulative 10) Paid in capital .

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