Q:1,3,4,7,8,10,11,12,14,16,18,19,21,22,24 | P:2A, 7A, 4B, 8B
The company is separate from the owner. It acts under itself, and not under someone else.
The owner does not have to worry about liabilities incurred through the company.
Stockholders and owners of the company are not responsible for liabilities that the
Stockholders may sell their share of the company to someone else, at their will
No. A company can incorporate in any state that they wish. Most choose to do so in Delaware due
to favorable laws.
Stockholders may vote for board of directors. They may also share in dividends.
Authorized 100,000; Issued 66,000; Outstanding 34,000
Depends on the market value of the shares of stock
Preferred stock gets a preference when it comes to dividends and assets. They also may
not have voting rights
The stockholder would be paid dividends for the current year and for any other unpaid
years before common stockholders receive dividends
The amount, current year dividends, and total preferred dividends
Debit to retained earnings: net loss; Credit to retained earnings: net gain