The least amount that the buyers of stock must contribute to the corporation or be at risk to pay creditors at a future date 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

Minimum legal capital is the minimum amount of capital that a corporation must have to protect the creditors. It is also called legal capital or stated capital. The other options are unrelated to this concept.

The Least Amount That the Buyers of Stock Must Contribute