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13.Corp (Same factors that make corp. superior also added additional…
13.Corp
Same factors that make corp. superior also added additional burdens
Method of handling capital without owners present and potential of ongoing returns allowed greater growth
However size and complexity created new bookkeeping problems
New bookkeeping designs and procedures are set up to handle the data
Delegated management influenced outside control
Introduced auditing for stockholders to have control
Corp modifies and is modified by environment
Bookkeeping is modified by growth of corporations
Positive effect on accounting
Created a reason for carefully preserving investments
Went beyond investments of captial and income
Corporations are affected by bookkeeping
Courts were involved in handling disputes of dividends and profits
What portion of profit is dividends?
Courts are not making new principles, only for better public and legal sanctions
East India Company
Terminable joint stocks
Dutch verse British
Dutch has better protection and continuing properties