Question

Assignment 1 Give the correct term as described by each statement Part A 1 2 A portion of profits that is paid out to shareholders The total amount of share capital that can be raised by a company during its time The monetary value of the shares of stock a company actually offers for sale to investors - A characteristic of a corporation, it means it has an identity in the eyes of law, whose nights and abilities are 3 4 different from those of its shareholders. The collective term given to the team of managers who handle a company's management- 5 6 7 A shareholder's liability is limited to the amount invested in the business enterprise- A physical or virtual place by which stockbrokers and traders can buy and sell securities, such as shares of stock and bonds and other financial instruments - A type of organization that combines the characteristics of a corporation with those of a partnership or sole 8 proprietorship- 9. Say if this statement is true or false. In a corporate structure, the owners of the company do not take part in the active participation of day to day affairs - 10. The term given to corporate owners - Part B 1. A corporation that is owned by few shareholders and whose shares are not actively traded - 2 A corporation created by the government- 3. A corporation whose aim is to offer service and not make profits - 4. The charter or basic organizational document of a corporation - 5. A person who takes the preliminary steps to organize a corporation - 6 A corporation that is founded by and composed of private persons for private purposes 7. A corporation whose profits must be used exclusively for chantable, educational or scientific purposes - 8 A type of corporate financing where capital is raised by selling company stock to investors 9 A type of corporate financing where money is raised through loan or borrowings - 10. Returns paid to lenders for the money lent to the company -

Answer 1

Part A

1. Dividends

2.Authorised share capital

3. Issued share capital

4.separate legal entity

5.senior management/ executive management

6.limited liability

7.Stock exchange

8. Limited liability company

9. True

10. Shareholders

Part B

1. closely held company

2. Statutory corporation

3. Non profit corporation

4. Articles of incorporation/ certificate of incorporation

5. Corporate Promoter

6. Private corporation

7. Charitable organisation

8. Equity financing

9. Debt financing

10. interest