Legal capital refers to ________.
A) a legal constraint imposed by lenders of a firm to maintain a certain level of debt to equity ratio and capital
B) capital impairment restrictions are generally established to provide a sufficient equity base to protect creditors' claims
C) the capital which is typically measured by the retained earnings
D) the capital which is typically measured by net income
B) capital impairment restrictions are generally established to provide a sufficient equity base to protect creditors' claims
You might also like to view...
The general ledger master data does not contain:
a. adjusting entry data b. customer number c. business event transaction d. source code field
In which of the following combinations of capital structure do the common stockholders have to bear the maximum risk?
A. 100 percent equity B. 100 percent debt C. 50 percent equity and 50 percent debt D. 25 percent equity and 75 percent debt E. 75 percent equity and 25 percent debt
Matrix structures try to take advantage of two types of structure at the same time.
Answer the following statement true (T) or false (F)
Operational management typically makes which type of decisions?
A) Semistructured B) Documented C) Structured D) Procedural E) Low-level