Legal capital
A) can be distributed to shareholders.
B) does not need to remain invested in the corporation.
C) can be distributed to shareholders up to the limit of their investment.
D) cannot be distributed to the shareholders, but must remain invested in the corporation.

Question

Quizplus · Accepted Answer

Legal capital is the portion of a company's equity that must remain invested in the business and cannot be distributed to shareholders. It is intended to protect creditors by ensuring that a minimum amount of capital is retained in the company.

Legal Capital