ACC 522 Chapter Notes - Chapter 11: Tax Rate, Small Business, Double Taxation
Document Summary
Acc 522 chapter 11 notes: corporations an introduction. Incorporated company artificial person: separate from owner(s) Recognized by law as an entity: has the power to act in its own right and, to enter into enforceable legal agreements. A corporation: can buy, own, sell, and lease property, and, can borrow funds for its own use as well as loan funds to others. Shareholders are liable for the debts of the corporation only to the extent of their contributions to the contribution in the form of share capital. Shareholders provide equity capital, creditors provide borrowed capital, suppliers provide property and services, customers acquire g&s, employees provide hr, and lessors rent property. Shareholder may have more than one relationship with the corporation. The corporation"s primary relationship is with the shareholder as the provider of equity capital to the corporation. The primary relationship shareholder as an equity capital provider.
