Chapter 9
Stockholders’ Equity
Short Exercises
(5 min.)
S 9-1
Corporation’s advantages:
•
Continuous life and transferability of ownership
•
Limited liability of the stockholders
Corporation’s disadvantages:
•
Corporate taxation
•
Government regulation
(5 min.)
S 9-2
1. The
stockholders
hold ultimate power in a corporation.
2. The
chairperson
of the board of directors is usually the most
powerful person in a corporation. Title is CEO.
3. The
president
is in charge of day-to-day operations. Title is
COO.
4. The chief financial officer is in charge of accounting and
finance. Title is CFO.
Chapter 9
Stockholders’ Equity
563
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