7252569-MIdterm-1 (dragged) 38

7252569-MIdterm-1 (dragged) 38 - Kieso, Weygandt, Warfield,...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Kieso, Weygandt, Warfield, Young, Wiecek Intermediate Accounting, Eighth Canadian Edition 15-4 documents are appropriately completed. Once the certificate of incorporation is issued, the corporation is recognized as a separate legal entity bound by the laws of the country and the provisions of the CBCA. The entity’s owners have greater legal protection against lawsuits. An added advantage is that incorporation involves the issue of shares, which allows access to capital markets. Corporations may be classified by the nature of ownership as follows: public sector corporations (government units such as municipalities, cities; government business enterprises such as Canada Post) and private sector corporations. b. Provincially incorporated companies would be subject to the requirements and provisions of the respective province's business corporations act. 6. Within a given class of shares, each share is exactly equal to every other share. A person's percent of ownership in a corporation is determined by the number of shares he or she
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/28/2012 for the course ACCTG ACC423 taught by Professor Smith during the Spring '10 term at University of Phoenix.

Ask a homework question - tutors are online