ADM 1340 Lecture Notes - Lecture 11: Dividend, Canadian Cancer Society, Authorised Capital

• School: University of Ottawa
• Department: Administration
• Course: ADM 1340
• Professor: Lamia Chourou

Document Summary

Identify & discuss major characteristics of a corp. Prepare entries for cash dividends, stock dividends, & stock splits. I(cid:374)di(cid:272)ate ho(cid:449) sha(cid:396)eholde(cid:396)s" e(cid:395)uity is p(cid:396)ese(cid:374)ted in financial statements. Corporation: legal entity that is separate & distinct from its owners (shareholders) Commonly classified by purpose & by ownership: purpose. P(cid:396)ofit (cid:894)m(cid:272)do(cid:374)ald"s, sea(cid:396)s ca(cid:374)ada, resea(cid:396)(cid:272)h i(cid:374) motio(cid:374), et(cid:272). (cid:895) Not for profit (united way, canadian cancer society, university of ottawa, etc. : ownership. Publicly held corporation shares traded on organized stock exchange & may have thousands of shareholders. Privately held corporation shares not traded on organized stock exchange & may have only a few shareholders. Separate legal existence: an entity separate & distinct from owners. Acts under its own name rather than in name of shareholders. May buy, own, & sell property; borrow money; may sue or be sued; & pays its own income tax. Limited liability of shareholders: creditors have recourse only to corporate assets to satisfy claims.