1.
____ own the corporation: stockholders
2.
_______is the maximum number of shares that can be issued by a corporation as specified in its charter. This should be a larger number than a corporation plans to issue initially to provide for future flexibility.: authorized
3.
a corporations own stock that is has issued and later reaquired: treasury stock
4.
a person who owns stock in a corporation (shareholder): stock holder
5.
a separate legal entity, separate and apart from its owners: corporation
6.
arbitrary amount assigned by company to a share of its stock: par value
7.
constitution for governing a corporation: bylaws
8.
Corporations are created under ------laws. Each state has different laws for incorporation. A corporation submits an application for a charter to the state where it chooses to incorporate.: state
9.
corporations have _______ lives regardless of changes in their ownership: continuous
10.
corporations pay income taxes on corporate income. Then, the stockholders pay personal income tax on cash dividends that they receive from corporations: double taxation
11.
elected by the stockholders, appoints officers to manage the business: board of directors
12.
management's goal is ______________: to maximize the firm's value for stockholders
13.
maximum number of shares a corporation can issue under its charter: authorized stock
14.
net income minus preferred divideds, divided by average common stockholders equity. a measure of profitability: return on equity
15.
net income plus interest expense divided by average total assets. this ratio measures a companys success in using its assets to earn income for the persons who finance the business.: return on assets
16.
no personal obligation of a stockholder for corporation debits. A stockholder can lose no more on an investment in a corporations stock than the cost of the investment: limited liability
17.
number of shares a corporation has issued to its stockholders: issued stock
18.
ownership of common stock conveys several rights: a voice in management, dividends, residual claim
19.
preferred stock whose owners must receive all dividends in arrears before the corporation can pay dividends to the common stock holders: cumulative preferred stock
20.
stock in the hands of the stockholders: outstanding stock
21.
stock that gives its owen certain advantages such as the priority to receive dividends before the common stockholders, and the priority to receive assets before the common stockholders if the company liquidates: preferred stock
22.
stockholders ownership interest in the assets of the corporation: stockholders equity
23.
the amount stockholders equity that stock holders have contributed to the corportation: paid in capital
24.
the most basic form of capital stock. the _______stock holders own a corportation: common stock
25.
the price a corporation agrees to eventually pay for its redeemable preferred stock, set when the stock is issued: redemption value
