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What is an amount of assets defined by state law that stockholders must invest and leave invested in a corporation called?
Wiki User
∙ 11y ago
Minimum legal capital
Wiki User
∙ 11y ago
The amount of assets defined by state law that stockholders must invest and keep invested in a corporation is called the minimum capital requirement. This requirement is meant to ensure the company has sufficient funds to meet its financial obligations and to protect the interests of creditors and shareholders.
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Describe the stockholders liability to creditors of a corporation?
A corporation's creditors usually do not be past the assets of the corporation to satisfy their claims. The most a stockholder can lose financially is the amount he or she invested.
The amount of money invested in a corporation by the owners is called?
equity
What is a normal balance for stockholders equity?
Stockholders equity is the amount invested by share holders in business and it is liability of business that's why it has credit balance as a normal balance.
What is INCS?
incorporatedINC stand for Incorporated.This means a company is legally in business and their are specific stipulations in regards to protection of the owners,CEO and or board members. In a corporation, stockholders, directors and officers typically are not liable for their company's debts and obligations. They are limited in liability to the amount they have invested in the corporation.
The total amount of cash and other assets received by a corporation from its stockholders in exchange for common stock is?
Referred to as paid-in capital.
Can you list the general rights of a common stockholders?
Vote at Stockholders' meetings Sell or otherwise dispose of their stock Purchase their proportional share of any common stock later issued by the corporation Receive the same dividend, if any, on each common share of the corporation Share in any assets remaining after creditors and preferred stockholders are paid when, and if, the corporation is liquidated. Each common share receives the same amount Stockholders also have the right to receive timely financial reports.
What is the relationship between amount invested interest rate and amount invested?
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What is a K-1 used for?
If a corporation has elected sub-S tax status (corporate profits are passed through to the stockholders and taxed on their personal returns), the K-1 is a form isuued by the corporation to the stockholder indicating the amount of income from the corporation that the stockholder should report on their personal return.
Why did corporations attract many investors?
a corporation is only limited by its members /share holders and the amount of capital invested by them. to attract a large number of investors is to a) achieve the level of capital required for the business b) large number of investors bear the risk to the amount of their capital invested only.
Status of shareholder of a company filling chapter 11 bankrupacy?
Each BK runs its own course...but generally, Stockholders (which are equity) in a bankrupt company (meaning it is insolvent and has more debt than equity)...have any interest in their stock surrendered in the BK. The creditors/lenders...in at least partial trade for not getting paid what they are owed...normally take ownership of the stock. Stockholders are NOT creditors...they are not owed anything by the company...they actually ARE the company! The company that doesn't pay those it borrowed from... If it wasn't a corporation, with stock (a stockholders liability is limited to the amount of his investment...no more), but say a partnership...then each of the partners would be liable for the debts of the Co on top of the amount they invested.
The significance of the is that it indicates to stockholders that they should not expect to receive the larger amount every year?
the significance of the is that it indicates to stockholders that they should not expect to receive the larger amount every year
What rights does a stockholder have?
A common stock gives the investor part ownership in the corporation, right to a percentage of the company's future profits and voting rights at the annual stockholders' meeting. With preferred stock the holder does not have voting rights in the corporation. The holder however, are guaranteed a certain amount of dividend each year.
