Match Each of the Following Stockholders' Equity Concepts to the Appropriate

question 23

Multiple Choice

Match each of the following stockholders' equity concepts to the appropriate term (a-h) .
-Corporate income distributed to stockholders

• A)Articles of incorporation
• B)Limited liability
• C)Bylaws
• D)Corporation
• E)Public corporation
• F)Board of directors
• G)Private corporation
• H)Dividends

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Definitions:

Limited Liability

A legal structure that limits the financial responsibility of owners or shareholders to their investment in a company, protecting personal assets from business debts.

Carrying on Business

The act of engaging in commercial activities with a degree of continuity and organization, aiming at producing income or profit.

Sole Proprietorship

A business owned and operated by one person, where there is no legal distinction between the owner and the business.

Unlimited Liability

A legal obligation where business owners and partners are personally responsible for all debts and liabilities of the business.