Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

12. Stockholders' Equity

Characteristics of a Corporation

Financial Accounting

12. Stockholders' Equity

Characteristics of a Corporation

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Multiple Choice

Which of the following is an attribute of a conventional corporation?

Unlimited liability for owners

Ownership is not transferable

Limited liability for shareholders

Corporation dissolves upon death of a shareholder

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Verified step by step guidance

Understand the concept of a conventional corporation: A conventional corporation is a legal entity that is separate from its owners (shareholders). It has specific attributes that distinguish it from other business structures.

Review the concept of limited liability: Shareholders of a corporation are not personally liable for the debts and obligations of the corporation beyond their investment in shares. This is a key feature of a conventional corporation.

Analyze the ownership transferability: In a conventional corporation, ownership is typically transferable through the buying and selling of shares, which is another distinguishing feature.

Consider the continuity of the corporation: A conventional corporation does not dissolve upon the death of a shareholder. It has perpetual existence unless formally dissolved.

Compare the attributes listed in the problem: Match the features of a conventional corporation (e.g., limited liability for shareholders, transferable ownership, perpetual existence) with the options provided to identify the correct attribute.