BU127 Study Guide - Legal Personality, Authorised Capital, Treasury Stock
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BU127 Full Course Notes
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Because a corporation is a separate legal entity, it can simple to become an owner easy to transfer ownership provides limited liability own assets sue and be sued incur liabilities enter into contracts. Ownership of a corporation: voting (in person or by proxy) proportionate distributions of profits (dividends) proportionate distributions of assets in a liquidation. Shareholders (owners of voting shares) board of directors (elected by shareholders): internal (managers), external (non-managers) president(appointed by directors) vp production, vp. Canada reacquired shares are usually cancelled: unissued shares: authorized shares that never have been sold authorized, issued, unissued outstanding treasury. Eps = profit available to common shareholders / average number of shares outstanding for the. *if there are preferred dividends, amount subtracted from profit earnings per share is probably the single most widely watched financial ratio. Two primary sources of shareholders" equity: contributed capital. Types of share capital common shares preferred shares.
