Question

In many states, the minimum amount that stockholders must contribute to the corporation, and which is intended to protect the creditors of the corporation, is called the:a. par value of preferred.b. minimum legal capital.c. premium capital.d. stated value.e. working capital.

Answer 1

Answer:

B, Minimum legal capital.

Explanation:

The minimum legal capital refers to the amount of assets to be contributed by shareholders to a firm or corporation by law. This contributions have been made mandatory in a lot of US states. This contribution can never leave the corporation as it is a type of security for creditors monies.

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