Accounting 2

Exhibit A die hards swayer #1: in that respect be four types of business organizations. 1) Sole proprietorship 2) federation (general and Limited) 3) Corporations 4) Limited financial obligation Company Rule #2: An expense is an asset that has been used to give rise revenues. Rule #3: An asset that is used for a face-to-face activeness is recorded as a drawing. Rule #4: A association is an entity created by law that is separate and distinct from its owners and its go on existence depends upon the corporate statutes of the state in which it is incorporated. Rule #5: The characteristics that distinguish a wad from proprietorship and compact argon: a) The corporation has separate legal existence from its owners. b) The conduct holders restrain limited liability. c) Ownership is shown in shares of capital tenor which are transferable units. d) It is relatively easy for a corporation to take in capital through the issuance of entrepot. e) The corpo ration lowlife ease up a continuous life. f) The management in a corporation organization is at the discretion of the board of directors, who are elective by the filiation holders. g) The corporation is subject to many brass regulations. h) The corporation must even off income on its earnings. The deportholders present tax on dividends.

The result is double taxation because you acquit tax on selling you declivity also. Definitions Stock split-A stock split or stock divide increases the number of shares in a public troupe. The price is adjusted such that the antecedent and after market capitalization of th e accompany remains the like and dilution! does not occur. Options and warrants are included. Reverse Stock split- On a stock exchange, a reverse stock split or reverse split is a process by a company of issuing to each shareholder in that company a smaller number of new shares in consent to that shareholders original shares that are subsequently canceled. A reverse stock split is also called a stock merge. The reduction in the number of issued...If you want to get a full essay, carve up it on our website: OrderCustomPaper.com

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