Ask Question
12 October, 19:14

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:

0
Answers (1)
  1. 12 October, 20:17
    0
    Answer: Minimum legal capital Explanation: The primary intention of minimum legal capital was to create a reserve amount that could be accessed by a company in case of default. Minimum legal capital is the par value of common stock and the stated value of the preferred stock that a business has sold or otherwise issued to investors.
Know the Answer?