Angel investors Authorized stock Cumulative Issued stock Limited liability Outst

ID: 2471884 • Letter: A

Question

Angel investors

Authorized stock

Cumulative

Issued stock

Limited liability

Outstanding stock

Paid-in capital

Redeemable

Retained earnings

Treasury stock

Definitions Terms a. The amount invested by stockholders. b. Shares available to sell. c. Shares can be returned to the corporation at a predetermined price. d. The earnings not paid out in dividends. e. Shares actually sold. f. Shares receive priority for future dividends if dividends are not paid in a given year. g. Shares held by investors. h. Shareholders can lose no more than the amount they invested in the company. i. Wealthy individuals in the business community willing to risk investment funds on a promising business venture. j. The corporation’s own stock that it reacquired.

Explanation / Answer

a) The amount invested by stockholders

Paid in capital

b) Shares available to sell

Authorized stock

c) Shares can be returned to the corporation at a predetermined price.

Redeemable

d) The earnings not paid out in dividends

Retained earnings

E) Shares actually sold

Issued Stock

f) Shares receive priority for future dividends if dividends are not paid in a given year

Cumulative

g) Shares held by investors.

Outstanding stock

h) Shareholders can lose no more than the amount they invested in the company

Limited liability

i) Wealthy individuals in the business community willing to risk investment funds on a promising business venture

Angel investors

j) The corporation’s own stock that it reacquired

Treasury stock