ARBUS102 Chapter Notes - Chapter 11: Dividend, Retained Earnings, Press Release
24 Feb 2016
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Chapter 11 reporting and interpreting shareholders" equity. Corporations account for a large percentage the total sales reported by canadian businesses. Canadians own shares in corporations either directly or indirectly through mutual fund or pension program. Corporates limit the legal liability if its owners. Corporations can raise large amounts of money because investors can easily participate in a corporation"s ownership. The ease of participation is related to several factors: shares can be purchased in small amounts, ownership interest are transferable, shareholders (or stockholders) are not liable for the corporation"s debts. The law recognizes a corporation as a separated legal entity, it exists separate from it owners, meaning it doesn"t die when its owners die. Corporations are created by submitting an application to the government. A corporation must have one type of shares called common shares: common share: the basic voting share issued by a corporation to shareholders, 1. Owners of common shares enjoy a number of benefits:
