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CORPORATIONS (Characteristics (ABILITY TO ACQUIRE CAPITAL, CONTINUOUS LIFE…
CORPORATIONS
Characteristics
ABILITY TO ACQUIRE CAPITAL
CONTINUOUS LIFE
TRANSFERABLE OWNERSHIP RIGHTS
CORPORATION MANAGEMENT
LIMITED LIABILITY OF STOCKHOLDERS
GOVERNMENT REGULATIONS
SEPARATE LEGAL EXISTENCE
ADDITIONAL TAXES
Treasury stock
reissue the shares
increase trading of the company’s stock
have additional shares available for use
reduce the number of shares outstanding
PURCHASE
COST METHOD
SALE
AT COST
ABOVE COST
BELOW COST
Stockholder's Rights
Vote in election of board of
directors
Share the corporate
earnings
Preemptive right
Residual claim
Retained Earnings Restrictions
Contractual restrictions
Voluntary restrictions
Legal restrictions
STOCK ISSUANCE
Shares don't have par-value (by BOD)
Shares don't have stated value
Shares have stated value
Issuance above stated value
Issuance at stated value
Shares have par-value (by government)
Issuance above par-value
Issuance at par-value
Issuance below par-value (rare case)
Corporate Capital
Retained Earnings
Paid-in-Capital
Capital stock.
Common Stock
Preferred Stock
Additional paid-in capital.
In excess of par value
In excess of stated value
From treasury stock
RETAINED EARNINGS ST.
R.E Dr.
Prior period adjustments for
overstatement of net income
Cash dividends and stock dividends
Net loss
Some disposals of treasury stock
R.E Cr.
Net income
Prior period adjustments for understatement of net income
STOCK SPLIT