An amount of assets defined by state law that stockholders must invest and leave invested in a corporation is called the:
A)Par value of preferred.
B)Minimum legal capital.
C)Premium capital.
D)Stated value.
E)Working capital.

Question

Quizplus · Accepted Answer

The minimum legal capital is the amount of assets that stockholders must invest and leave invested in a corporation, as defined by state law. This is also known as the legal minimum capital or minimum capital requirement. Par value of preferred, stated value, premium capital, and working capital are not related to this concept.

An Amount of Assets Defined by State Law That Stockholders