BM21 Chapter 16 Vocab Quiz Review

The money required to start or expand a business.

• capital

• equity capital

• retained earnings

• debt capital

Business owners’ personal financial contributions to the business.

• capital

• equity capital

• retained earnings

• debt capital

Profits that are not taken out of the business but instead are saved for future use by the business.

• capital

• equity capital

• retained earnings

• debt capital

Money that others loan to a business (lenders, creditors).

• capital

• equity capital

• retained earnings

• debt capital

Stock Ownership that gives holders the right to participate in managing the business through voting privileges and the right to share in any profits through dividends.

• Common stock

• Par value

• Market value

• Preferred stock

A dollar value assigned to new shares

• Common stock

• Par value

• Market value

• Preferred stock

The price at which stock is bought and sold on any given day.

• Common stock

• Par value

• Market value

• Preferred stock

Stock Ownership that gives holders priority when distributing dividends or assets. No voting rights

• Common stock

• Par value

• Market value

• Preferred stock

The value of a share of stock that is found by dividing the net worth (assets minus liabilities) of the corporation by the total number of shares outstanding.

• par value

• book value

• market value

A loan that must be repaid within a year.

• short-term debt

• long-term debt

• promissory note

• line of credit