Match the Items Below by Entering the Appropriate Code Letter

question 4

Essay

Match the items below by entering the appropriate code letter in the space provided.
A. Limited liability J. Cumulative feature
B. Shares K. Deficit
C. Board of directors L. Liquidating dividend
D. Share premium M. Earnings per share
E. Retained earnings N. Return on ordinary shareholders' equity
F. Preemptive right O. Cash dividend
G. Par value P. Declaration date
H. Legal capital Q. Share dividend
I. Treasury shares R. Share split
____ 1. Net income retained in the corporation.
____ 2. The amount that must be retained in the business for the protection of creditors.
____ 3. Preference shareholders have a right to receive current and unpaid prior-year dividends before ordinary shareholders receive any dividends.
____ 4. Creditors only have corporate assets to satisfy their claims.
____ 5. Responsible to shareholders for corporate activity.
____ 6. The amount assigned to each share in the corporate charter.
____ 7. Unit of ownership in a corporation.
____ 8. Enables shareholders to maintain their same percentage ownership when new shares are issued.
____ 9. Corporation's own shares that have been reacquired by the corporation but not retired.
____ 10. Portion of the proceeds above the share's par value.
____ 11. A dividend declared out of share capital or share premium.
____ 12. A pro rata distribution of cash to shareholders.
____ 13. A debit balance in retained earnings.
____ 14. A pro rata distribution of the corporation's own shares to shareholders.
____ 15. Shows how many currency units of net income were earned for each dollar invested by the owners.
____ 16. The date the board of directors formally declares the dividend and announces it to shareholders.
____ 17. The issuance of additional shares to shareholders accompanied by a reduction in the par or stated value per share.
____ 18. Widely used by shareholders and potential investors in evaluating the profitability of a company.

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Definitions:

Intolerance for Ambiguity

A personality trait that describes individuals who struggle with uncertain, unclear, or unpredictable situations.

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A psychological term referring to an individual's tendency to engage in and enjoy thinking, analysis, and problem-solving.

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Discourse or discussion characterized by careful consideration, reflection, and respect for differing views.