Problem P13 - 1

The following is a list of terms that you should become familiar with:

Terms
Authorized stock	Paid-in-capital
By-laws	Par value stock
Charter	Preferred stock
Corporation	Privately held corporation
Legal Capital	Publicly held corporation
No-par value stock	Retained earnings
Organization costs	Stated value
Outstanding stock	Treasury stock

Insert the appropriate term for each definition below:

1. A document that creates a corporation.
2. A business organized as a legal entity separate and distinct from its owners under state corporation laws.
3. A corporation that may have thousands of stockholders and whose stock is regularly traded on a national securities exchange.
4. A corporation that has only a few stockholders and whose stock is not available for sale to the general public.
5. The maximum amount of shares of stock a company is allowed to sell as indicated in its charter.
6. The costs incurred in the formation of a corporation.
7. Number of shares that have been issued and is being held by stockholders.
8. Total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock.
9. Cumulative profits and losses earned/lost since the corporation began operations.
10. Capital stock that has been assigned a value per share in the corporate charter.
11. The amount per share assigned by the board of directors to no-par stock that becomes legal capital per share.
12. Capital stock that has not been assigned a value in the corporate charter.
13. Capital stock that has some contractual preferences over common stock.
14. The internal rules and procedures for conducting the affairs of the corporation.
15. A corporations own stock that has been issued and reacquired by the corporation but not retired.