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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is an advantage that corporations have over other types of businesses?

Profits are taxed only once at the individual level

Limited liability for shareholders

Ownership is difficult to transfer

Corporations have a limited life span

Previous problemNext problem

Verified step by step guidance

Understand the concept of a corporation: A corporation is a legal entity that is separate from its owners (shareholders). It has distinct characteristics compared to other business structures such as sole proprietorships or partnerships.

Analyze the concept of limited liability: Limited liability means that shareholders are not personally responsible for the debts and obligations of the corporation. Their financial risk is limited to the amount they invested in the corporation.

Compare taxation: Corporations are subject to double taxation, meaning profits are taxed at the corporate level and again at the individual level when distributed as dividends. This is different from sole proprietorships or partnerships, where profits are taxed only once at the individual level.

Evaluate ownership transfer: Corporations allow for easy transfer of ownership through the buying and selling of shares, unlike partnerships or sole proprietorships where ownership transfer can be more complex.

Consider the lifespan of corporations: Corporations have an unlimited lifespan, meaning they continue to exist even if ownership changes or shareholders leave, unlike sole proprietorships or partnerships which may dissolve upon the owner's departure.