Match Each Statement with the Correct Term Below

question 113

Multiple Choice

Match each statement with the correct term below.
-Subchapter S

• A)Debt agreement specifying loan terms.
• B)One created under the laws of a given state.
• C)One created under the laws of any other state or jurisdiction.
• D)Person who takes the preliminary steps to organize a corporation.
• E)Person who signs the articles of incorporation.
• F)Rules governing a corporation's internal management.
• G)One formed in substantial compliance with the incorporation statute and having all corporate attributes.
• H)One not formed in compliance with the statute but recognized for most purposes as a corporation.
• I)One whose shares are owned by a large number of people and are widely traded.
• J)One created to administer a unit of local civil government.
• K)Any action taken or contract made by a corporation that goes beyond its express and implied powers.
• L)Source of capital creating no ownership interest and involving the corporation's promise to repay funds loaned to it.
• M)A type of debt security.
• N)Person who agrees to purchase stock in a corporation.
• O)Condition the payment of interest to some extent on corporate earnings.
• P)Bonds subject to redemption.
• Q)Eligible corporation electing to be taxed as a partnership.
• R)Corporate ownership interest having superior contractual rights with regard to dividends, liquidation rights, or both.
• S)May be exchanged for other securities.
• T)Claims against a corporation's general assets and also a lien on specific property.
• U)Basic organizational document of a corporation; charter.
• V)Shares reacquired by a corporation.
• W)Opportunity to purchase a pro rata share of new stock offerings.
• X)Source of capital creating an ownership interest in the corporation.
• Y)A corporation's exercise of the right to repurchase its own shares.

---

Definitions:

Demand Curve

This depicts how consumer demand for a product changes as the price of that product changes, illustrating the inverse relationship between price and quantity demanded.

Perfectly Elastic

Describes a situation in which quantity demanded or supplied changes infinitely in response to any change in price, visualized as a horizontal line on a demand or supply graph.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies as the quantity of output produced changes.

Purely Competitive Firm

A business that operates in a market with infinite buyers and sellers, no barriers to entry, and a standard product, leaving the company as a price taker.