BUS 321 Lecture 15: Chapter 15 - Notes (in-class) (POST)
20 Sep 2017
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In a corporate form of business organization, the shareholders are said to possess a residual interest in the business. This means that the shareholders (owners) bear the ultimate risks and rewards of ownership. The shareholders" interest in a business enterprise is measured by the difference between assets and liabilities and is recorded in the shareholders" equity section of the statement of financial position. Shareholders" equity is not a claim to specific assets but a claim against a portion of the total assets. Within a given class of shares, each share is exactly equal to every other share. The ownership of shares can be easily transferred from one to another individual. Teaching notes: bus 321 d200 summer 2017 page 1 / 8. Special classes of shares with certain preferential rights (a prior claim on earnings and priority claim on assets upon dissolution) and may also have following features:
