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Differentiate between formal and informal groups.
Paid-In Capital
The total amount of capital that shareholders have directly invested in a company through the purchase of its securities.
Retained Earnings
The portion of net income that is retained by the corporation rather than distributed to its shareholders as dividends.
Organizational Expenses
Costs incurred during the formation of a company, such as legal fees, registration fees, and promotional expenses.
Intangible Assets
Non-physical assets possessed by a company, such as patents, trademarks, and goodwill, that have value and can produce future economic benefits.
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