Match the Terms to the Definitions

question 50

Multiple Choice

Match the terms to the definitions.
-A common stock provision that provides for the maintenance of stockholders' ownership percentage upon the issuance of new stock.

• A)Authorized shares
• B)Issued shares
• C)Outstanding shares
• D)Par value
• E)Stated capital (legal capital)
• F)Preemptive right
• G)Retained earnings
• H)Stock split
• I)Stock option
• J)Stock warrant
• K)Treasury stock
• L)Call provision
• M)Earnings per share
• N)Dividend yield ratio
• O)Dividend payout ratio

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Definitions:

Writing Requirement

A legal standard mandating that certain contracts or agreements must be in written form to be considered valid, often to ensure clarity and evidence of the terms.

Merchants

Business people or companies engaged in retail or wholesale trade of goods or services.

Statute of Frauds

A legal principle requiring certain contracts to be in writing and signed by the parties involved, ensuring enforceability.

Unconscionable

Refers to actions or terms in contracts that are so unfair or oppressive to one party that no reasonable or informed person would agree to them.