Match Each Definition with the Correct Term Below

question 10

Multiple Choice

Match each definition with the correct term below.
-Authorized shares

• A)The maximum number of shares of stock that a corporation's state charter allows it to issue.
• B)A distribution among stockholders of the assets that a corporation's earnings have generated.
• C)A summary of the changes in the components of the stockholders' equity section of the balance sheet.
• D)A proportional distribution of shares among a corporation's shareholders.
• E)Stock that does not have a par value.
• F)Represents a company's total assets minus its liabilities.
• G)No-par stock that has a value assigned to it either by the board of directors or the state.
• H)A dividend declared by a company that is in excess of its retained earnings.
• I)The shares of stock that a corporation sells or otherwise transfers to stockholders.
• J)When a corporation increases the number of shares of stock issued and outstanding and reduces the par or stated value proportionally.

---

Definitions:

Validity

When a scale measures what it’s supposed to measure.

Valid Test

A test that accurately measures what it is intended to measure, demonstrating reliability and relevance to the specific purpose for which it is used.

Barnum Effect

The tendency for people to believe vague, positive statements about themselves.

Intercoder Reliability

Occurs when people coding stories or written material agree, using a set of rules, that it meets certain criteria.