Pat Kabza, a student, asks for your help in understanding the different corporation characteristics. (a) Explain the

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Pat Kabza, a student, asks for your help in understanding the different corporation characteristics.
(a) Explain the following characteristics to Pat and identify whether they are an advantage or a disadvantage for a large, publicly traded corporation:
(1) Separate legal existence,
(2) Limited liability of shareholders,
(3) Transferable ownership rights,
(4) Ability to acquire capital,
(5) Continuous life,
(6) Separation of management and ownership,
(7) Government regulations,
(8) Income tax.
(b) Would your answers to part (a) change if you were commenting about the advantages and disadvantages for a small, private corporation rather than a large, publicly traded corporation? Explain.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Financial Accounting Tools for Business Decision Making

ISBN: 978-1118644942

6th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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