ACC 210 Study Guide - Comprehensive Midterm Guide: International Financial Reporting Standards, International Accounting Standards Board, Public Company Accounting Oversight Board

• School: Stony Brook University
• Department: Accounting
• Course: ACC 210
• Professor: Qian Feng

Document Summary

Tax advantages: legally responsible, taxed as own personal income, profit gets taxed once: partnership: 2+, all contribute, all have a say. Tax advantages: personal income tax only once but personally liable for all debts and legal obligations: corporation. Easier to transfer ownership- you can just buy stock instead of investing in a partnership. Investors receive shares of stock to indicate their ownership claim. Easier to raise funds because individuals can become stockholders by investing relatively small amounts of money. No personal liability: separation between ownership and management. Tax rate usually higher than regular tax rate, its taxed once as legal entity and what"s left over goes to investors and they"re taxed for personal income. Filing ipo: initial public offering; people can purchase stock. You get money but you lose ownership (transfer ownership: there are also hybrid businesses. Combine tax advantages of partnerships with the limited liability of corporations.