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Match Each of the Following Stockholders' Equity Concepts to the Appropriate

Question 88

Matching

Match each of the following stockholders' equity concepts to the appropriate term.

Premises:
A legal entity, separate from the people who create and operate it
A company whose shares can be bought and sold in public markets
The rules and procedures for conducting a corporation's affairs
A company whose shares are not bought or sold in public markets
Document which formally creates a corporation
Creditors cannot pursue stockholders' personal assets to satisfy claims
Group which meets periodically to establish corporate policies
Corporate income distributed to stockholders
Responses:
articles of incorporation
limited liability
bylaws
corporation
public corporation
board of directors
private corporation
dividends

Correct Answer:

A legal entity, separate from the people who create and operate it
A company whose shares can be bought and sold in public markets
The rules and procedures for conducting a corporation's affairs
A company whose shares are not bought or sold in public markets
Document which formally creates a corporation
Creditors cannot pursue stockholders' personal assets to satisfy claims
Group which meets periodically to establish corporate policies
Corporate income distributed to stockholders
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