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 owns a corporation?

The shareholders

The employees

The board of directors

The chief executive officer (CEO)

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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 its shareholders. Shareholders are individuals or entities that purchase shares of the corporation, which represent ownership stakes.

Clarify the role of shareholders: Shareholders have ownership rights, including voting on major corporate decisions, receiving dividends, and benefiting from the corporation's financial success.

Differentiate shareholders from other roles: Employees, the board of directors, and the CEO are not owners of the corporation unless they also hold shares. Their roles are operational or managerial, not ownership-based.

Explain the board of directors' role: The board of directors is elected by shareholders to oversee the corporation's management and ensure it operates in the best interest of the shareholders.

Summarize the ownership structure: The shareholders collectively own the corporation, while the employees, board of directors, and CEO are responsible for its day-to-day operations and strategic direction.