Legal Capital

question 132

Multiple Choice

Legal capital

• A)can be distributed to shareholders.
• B)does not need to remain invested in the corporation.
• C)can be distributed to shareholders up to the limit of their investment.
• D)cannot be distributed to the shareholders but must remain invested in the corporation.

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Definitions:

Federal Budget

The annual financial statement presenting the government's proposed revenues and spending for a financial year.

Crowding In

An economic situation where increased government spending leads to an increase in private sector investment.

Crowding Out

A phenomenon where increased government spending leads to a reduction in private sector investment due to higher interest rates.

Increase Taxes

Refers to a government's decision to raise the percentage of compulsory contributions on personal or corporate income, goods, services, or transactions, often aimed at financing government expenses.