Question: 1. Why do investors buy shares of common stock of companies? Be specific. 2. What is meant by the phrase accounting entity? Give three examples

1. Why do investors buy shares of common stock of companies? Be specific.

2. What is meant by the phrase accounting entity? Give three examples of related yet separate accounting entities.

3.What different messages regarding its financial condition and profit performance might an industrial company wish to convey to (a) one of its major customers and (b) its shareholders?

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