Directions: Number your answers and answer in complete sentences.

1. What are the two categories of Stockholder's Equity on the balance sheet?

2. What is the difference between the two categories?

3. What are the two classes of stock in a corporation?

4. Which class of stock is listed first? Why?

5. What is par value? Stated value?

6. What happens to the amount of cash that is invested in a corporation over the par/stated value?

7. What is treasury stock?

8. Explain the difference between authorized stock, issued stock, and outstanding stock.

9. What does a corporation have to do if it is incorporated in one state, but wants to carry out business in another?

10. What are the characteristics of the corporate form of business?