Chapter 11-stockholder's equity

Chapter 11-stockholder's equity - Chapter 11 Stockholders...

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Chapter 11 Stockholder’s Equity
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Corporate characteristics Separate legal existence Limited liability of shareholders Transferability of ownership Ability to acquire capital Continuous life
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Corporate characteristics continued Shared management Stockholders elect board of directors Board of directors hires president President hires vice presidents, etc.
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Corporate characteristics continued Government regulations Sec Sarbanes oxley State laws Additional taxes Double tax – corp net income and dividends received Mitigated by reduced tax rate for
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Two types of stockholder’s equity Paid in capital – investments by owners Retained earnings – cumulative net income kept in the company since inception
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Ways to classify corporations Purpose – profit vs nonprofit Nonprofits are formed for charitable, educational or medical purposes Ownership Publicly held – shares available for sale on open market Privately held – sales of shares restricted Professional corporation (PC) – all shareholders must be licensed in discipline being practiced by the PC
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This note was uploaded on 02/15/2012 for the course GERM 200 taught by Professor Kuhmar during the Spring '10 term at SUNY Albany.

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Chapter 11-stockholder's equity - Chapter 11 Stockholders...

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