1. Legal capital is
   1. defined by state law and varies among states.
   2. defined by federal law and specified in all state-granted charters.
   3. the amount of shareholders' equity that must be distributed as dividends.
   4. usually defined by the amount of additional paid-in capital.
2. The shares of capital stock that a corporation has issued to and reacquired from shareholders but not retired is called
   1. authorized capital stock.
   2. subscribed capital stock.
   3. outstanding capital stock.
   4. treasury stock.