ACCT352 Lecture 8: Chapter 39 REVIEW
21 Dec 2018
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Limited legal liability -- corporation is liable for its own debts and obligations. Shareholders are only liable up to the amount of their investments. Ability to attract investors -- publicly-held corporations have ability to issue stock and bonds to fund the business enterprise. Easy transfer of ownership -- shareholders can easily sell shares in a corporation. Perpetual life -- ease of transfer gives a corporation an unlimited lifespan. Corporations don"t die when a shareholder dies (as is the case with other forms of businesses) Public corporation (government owned corporation) -- a corporation formed by a government to meet a specific governmental or political purpose; local government corporations are often called municipal corporations. Private corporation -- a corporation formed to conduct privately owned business. Not-for-profit corporation generates revenue like a for profit corporation but cannot use profit to pay dividends must return it to retained earnings: identify the 5 corporate officers.
