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 investor-owners of a corporation?

Directors

Shareholders

Employees

Creditors

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Verified step by step guidance

Understand the concept of a corporation: A corporation is a legal entity that is separate from its owners. It can own assets, incur liabilities, and enter into contracts.

Identify the role of investor-owners: Investor-owners are individuals or entities that invest capital into the corporation in exchange for ownership rights, typically represented by shares of stock.

Clarify the term 'shareholders': Shareholders are the investor-owners of a corporation. They own shares, which represent their ownership interest in the company. Shareholders have rights such as voting on corporate matters and receiving dividends.

Differentiate shareholders from other stakeholders: Directors are responsible for overseeing the corporation's management, employees work for the corporation, and creditors lend money to the corporation but do not own it. None of these groups are considered investor-owners.

Conclude that shareholders are the correct answer: Shareholders are the individuals or entities that hold ownership stakes in the corporation, making them the investor-owners.