ADMN 2021H Chapter Notes - Chapter 11: Financial Statement, Stock Split, Initial Public Offering
27 Feb 2017
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Chapter 11 reporting and analyzing shareholders" equity. Corporation a legal entity that is separate and distinct from its owners, who are known as shareholders: may be public or private. Public corporation has thousands of shareholders and its shares are. Private corporation few shareholders, does no offer its shares for sale to publicly traded and held the general public. Separate legal existence: separate and distinct from its owners, acts under its own name rather than in the name of its shareholders. Limited liability of shareholders: liability is limited to their investment in the shares of the corporation, they will not lose more than their investment. Continuous life: unlimited life, continuance is not affected by withdrawal, death, or incapacity of a shareholder, employee, or officer, successful corporation can have a very long life. Corporation management: shareholders can invest in a corporation without having to manage it personally, they manage it indirectly through a board of directors they elect.
