Match the Terms with the Definitions

question 9

Multiple Choice

Match the terms with the definitions.
-Preferred stock that has a right to share with common stock in dividends in excess of a stated dividend rate.

• A)preemptive right
• B)participating preferred stock
• C)par value
• D)capital stock
• E)organization costs
• F)charter
• G)common stock
• H)nonparticipating preferred stock
• I)noncumulative preferred stock
• J)no-par stock
• K)incorporators
• L)issued stock
• M)market value
• N)mutual agency

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Definitions:

Net Worth

The total assets minus total liabilities of an individual or company, representing the financial value of the entity.

Assets

Resources owned by a business or individual with economic value expected to provide future benefits.

Liabilities

Financial obligations or debts that an entity owes to others, which must be settled over time through the transfer of economic benefits.

Excise Tax

A tax imposed on specific goods, services, or transactions, often with the aim of reducing their consumption or raising government revenue.