10

Question 1

Disadvantages

Answer 1

Separation of ownership and management

Double taxation

Gov regulations

Question 2

Organization of corporation

Answer 2

Charter
By laws
Board of directors

Question 3

Ownership

Answer 3

Real owners of corporation are common stockholders

Question 4

Shareholder 4 basic rights

Answer 4

Vote

Dividends

Liquidation

Preemption

Question 5

Stockholder equity

Answer 5

Paid in capital or contributed capital:
Stock accounts
Additional paid in capital

Retained earnings

Question 6

Common shareholders

Answer 6

Basic form of stock
Four basic rights
Benefit of company succeeds
More risk

Question 7

Preferred shareholders

Answer 7

Receive dividends first
Assets first in liquidation
Earn fixed dividend
Few corporation issue

Question 8

Authorized

Answer 8

Stock owned by company

Question 9

Issued

Answer 9

Goes to stockholder

Question 10

Outstanding

Answer 10

Owned by stockholder

Question 11

Par value

Answer 11

Amount assigned by corporation to share stock

Defines minimum legal capital

Stock may/ not have par

Question 12

Stock issuance for case has/dosent have par value

Answer 12

Treated same

Different accounts

Question 13

Advantages

Answer 13

Separate legal entity 
Owned by shareholders 
Ongoing life sand transferability 
Limited liability of shareholder 
Ease of raising capital