Accounting Review Notes

ACCOUNTING REVIEW NOTES Chapter 13 Corporations: Organization and Shargon crownwork Transactions Page 688 Questions and Answers 1. Corporations can be classified in contrary ways. For example, they whitethorn be classified by use of goods and services (e.g., profit, not-for-profit, or income trust) or by possession (e.g., public or private). rationalize the difference between each of these types of classifications. Ans. Corporations can be classified: By Purpose -Profit: such(prenominal)(prenominal) as Tim Hortons -Not-For-Profit: such as Canadian Cancer Society -Income Trust: such as white-livered Pages By Ownership -Publicly Held Corporation: may have m of shareholders. -shares exchanged in TSX -e.g. Sears, Bombardier -Privately Held Corporation:-few shareholders -shares are not interchange to the public -e.g. McCain Foods 2.

Pat Kabza, a student, have a bun in the oven for your help in pinch the following characteristics of a lodge: (a) limited financial obligation of shareholders, (b) mobile ownership rights, and (c) ability to claim chapiter. Explain how these characteristics work unitedly to create a epoch-making advantage for the corporate mould of organization. Ans. (a) Limited liability of shareholders: liability is limited to the amount invested on the corporation by the investor and founder liability control comp! ared to proprietorship and a general partnership. (b)Transferable ownership rights: ownership is held in shares of capital, free to transferral ownership and transfer of shares is on shareholder decision. So it does not require laudation of either the corporation or other shareholders. (c)Ability to acquire capital: It is almost unlimited for a company to get capital by issuing shares 3. (a) Your booster amplifier R....If you want to get a full essay, order it on our website: OrderEssay.net

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