The Costs of Bringing a Corporation into Existence,including Legal Fees,promoter

question 166

Multiple Choice

The costs of bringing a corporation into existence,including legal fees,promoter fees,and amounts paid to obtain a charter,are called:

• A)Minimum legal capital
• B)Stock subscriptions
• C)Organization costs
• D)Cumulative costs
• E)Prepaid fees

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Definitions:

Market Price

The rate at present for engaging in buy or sell activities for a service or asset.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that is paid out before dividends to common stockholders.

Preemptive Rights

A shareholder's right to buy new shares issued by a company in proportion to their existing shareholding, before the shares are offered to the public.

Stock Purchase

The act of buying shares in a company, giving the purchaser a portion of ownership in that company.