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:

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Business

Ruth Wang

27 January, 20:55

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:

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Roland Wilcox · Answer 1

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.