Accounting Review Notes

ACCOUNTING REVIEW NOTES Chapter 13 Corporations: Organization and Sh be pileus Transactions Page 688 Questions and Answers 1. Corporations can be classified in contrary ways. For example, they may be classified by pattern (e.g., profit, not-for-profit, or income trust) or by monomania (e.g., public or private). rationalize the difference between each of these types of classifications. Ans. Corporations can be classified: By Purpose -Profit: much(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, anticipate for your help in pinch the following characteristics of a slew: (a) limited obligation of shareholders, (b) mobile ownership rights, and (c) ability to lead superior. Explain how these characteristics work unitedly to create a satisfying 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 go against liability control compared to proprietorship and a general partnership. ! (b)Transferable ownership rights: ownership is held in shares of capital, free to impart ownership and transfer of shares is on shareholder decision. So it does not require cheering 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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