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c. the amount of capital the federal government allows a corporation
to generate.
d. the total capital raised by a corporation within the limits set by
the Securities and Exchange Commission.
S25. Stockholders of a business enterprise are said to be the
residual owners. The term residual owner means that shareholders
a. are entitled to a dividend every year in which the business earns a
profit.
b. have the rights to specific assets of the business.
c. bear the ultimate risks and uncertainties and receive the benefits
of enterprise ownership.
d. can negotiate individual contracts on behalf of the enterprise.
26.
Total stockholders' equity represents
a. a claim to specific assets contributed by the owners.
b. the maximum amount that can be borrowed by the enterprise.
c. a claim against a portion of the total assets of an enterprise.
d. only the amount of earnings that have been retained in the
business.
27.
A primary source of stockholders' equity is
a. income retained by the corporation.
b. appropriated retained earnings.