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Match the Following Terms with Their Definitions

Question 141

Matching

Match the following terms with their definitions. Each letter is used only once.

Premises:
Redeemable.
Issued stock.
Treasury stock.
Retained earnings.
Outstanding stock.
Authorized stock.
Angel investors.
Paid-in capital.
Limited liability.
Cumulative.
Responses:
Shares receive priority for future dividends, if dividends are not paid in a given year
Shares held by investors
Shares available to sell
The amount invested by stockholders
Shares actually sold
Shareholders can lose no more than the amount they invested in the company
The earnings not paid out in dividends
Shares can be returned to the corporation at a predetermined price
The corporation's own stock that it reacquired
Wealthy individuals in the business community willing to risk investment funds on a promising business venture

Correct Answer:

Redeemable.
Issued stock.
Treasury stock.
Retained earnings.
Outstanding stock.
Authorized stock.
Angel investors.
Paid-in capital.
Limited liability.
Cumulative.
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