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

Who are considered the owners of a corporation?

Shareholders

The board of directors

Creditors

Employees

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Verified step by step guidance

Understand the concept of ownership in a corporation: A corporation is a legal entity that is owned by individuals or entities who hold shares of its stock. These individuals or entities are referred to as shareholders.

Clarify the role of shareholders: Shareholders are the actual owners of the corporation. They invest capital into the corporation by purchasing shares, which represent ownership stakes in the company.

Differentiate shareholders from other stakeholders: The board of directors, creditors, and employees are not considered owners. The board of directors is responsible for overseeing the corporation's management, creditors lend money to the corporation, and employees work for the corporation but do not own it unless they hold shares.

Explain the rights of shareholders: Shareholders typically have voting rights in corporate decisions, such as electing the board of directors, and they may receive dividends if the corporation distributes profits.

Summarize the answer: The owners of a corporation are the shareholders, as they hold equity in the company and have ownership rights.