Match the Term and the Definition

question 106

Essay

Match the term and the definition.Not all definitions will be used.
_____ Corporation
_____ Par value
_____ Growth investment (stock)
_____ LLC
_____ Current dividend preference
_____ Partnership
_____ No-par value stock
_____ Income investment (stock)
_____ Cumulative dividend preference
_____ Sole proprietorship
A.When preferred shareholders are paid dividends before other shareholders.
B.When shareholders prefer to receive dividends at the end of the year rather than each quarter.
C.Shares that have no specified legal value per share in the corporate charter.
D.A company that issues stock on one of the major stock exchanges.
E.An unincorporated business that is owned by a single individual.
F.A stock that is currently selling for its original issue price.
G.A company that has a separate legal identity from its owners.
H.When companies are obligated to pay preferred shareholders past dividends not yet distributed before paying dividends to owners of common shares.
I.The nominal value per share of stock set by the company's charter.
J.Stock of companies that tend to reinvest earnings to provide for greater future sales and profits.
K.A company that is like a partnership in nature except that it has limited liability.
L.Stock of companies that tend to pay relatively high dividends compared to the stock price.
M.An unincorporated business owned by two or more individuals.

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Definitions:

Consumer Surplus

The split between the maximum total consumers are prepared to pay for a product or service and the actual payment.

Producer Surplus

The gap between the minimum amount producers are willing to accept for providing a good or service and the actual amount they end up receiving.

Producer Surplus

The additional income a producer receives for selling a good or service above its production cost.

Tax

A tax is a compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization.