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:

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.