Many States Impose No Limit on the Rate of Interest

question 26

True/False

Many states impose no limit on the rate of interest that may be charged on loans to corporations.

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Definitions:

Preferred Stock

A type of stock that generally provides dividends to its holders before dividends are issued to common stockholders, and typically has rights to assets before common stock upon liquidation.

Organization Cost

An intangible asset that records the initial cost of forming the corporation, such as legal and incorporating fees. Today, it is being expensed.

Intangible Asset

An asset that lacks physical substance, such as intellectual property, brand recognition, or goodwill.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.