In a corporation, the two basic sources of shareholders' equity are:

Question

Quizplus · Accepted Answer

The two basic sources of shareholders' equity in a corporation are share capital and retained earnings. Share capital represents the amount of money that shareholders have invested in the company by purchasing shares, while retained earnings are the profits that the company has earned and kept (i.e. not distributed as dividends). Donated capital refers to contributions made to the company without the expectation of receiving shares or other ownership rights, and operating capital refers to funds used to finance the company's day-to-day operations. Therefore, options A, B, and D are incorrect.

In a Corporation, the Two Basic Sources of Shareholders' Equity