MGT120H5 Chapter Notes - Chapter 9: Dividend, Retained Earnings, Chief Financial Officer

• School: UTM
• Department: Management
• Course: MGT120H5
• Professor: Catherine Seguin

Document Summary

Corporation, shares issuance, repurchasing shares, stock splits, fair vs. book value, roa. A corporation is a business entity formed under federal or provincial law, where the government grants articles of incorporation. A corporation is a distinct entity & has many of the same rights as a person. For example, a corporation may buy, own & sell property. Assets & liabilities belong to the corporation, not to its owners. The corporation may also enter into contracts, sue & be sued. Their legal names include limited, corporation, or incorporated (ltd. , corp. , & inc. ) at the end. Corporations have continuous lives regardless of changes in ownership. Shareholders may sell or trade the shares to another person, give them away, bequeath them in a will, or dispose of them in any other way. In contrast, proprietorships and partnerships terminate when ownership changes. Shareholders have limited liability for the corporation"s debts, so they have no personal obligation to repay the company"s liabilities.