Asked by Cassie Trucchio on Jun 20, 2024

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Legal capital

A) cannot be distributed to shareholders.
B) reflects the most recent market price.
C) is voted on by the shareholders.
D) is indicative of the worth of the share.

Legal Capital

The portion of a company's equity that cannot legally be distributed to its shareholders and must be maintained as a protective measure for creditors.

  • Comprehend the principle of legal capital and its consequences for distributions to shareholders.
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GG
Gisselle GironJun 21, 2024
Final Answer :
A
Explanation :
Legal capital is the portion of a company's equity that cannot be distributed to shareholders and is often defined by law to protect creditors by maintaining a minimum capital level within the company. Choices B, C, and D do not accurately describe legal capital.