Accounting 2

Exhibit A die hards witness #1: at that place atomic number 18 four types of business organizations. 1) Sole proprietorship 2) alliance (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 move existence depends upon the corporate statutes of the state in which it is incorporated. Rule #5: The characteristics that distinguish a familiarity from proprietorship and compact are: a) The corporation has separate legal existence from its owners. b) The conduct holders digest limited liability. c) Ownership is shown in shares of capital tenor which are transferable units. d) It is relatively easy for a corporation to impart capital through the issuance of entrepot. e) The corporation lowlife have a continuous life. f) The management in a corporation organization is at the discretion of the board of directors, who are select by the filiation holders. g) The corporation is subject to many government regulations. h) The corporation must even off income on its earnings. The armouryholders lay out tax on dividends.

The result is double taxation because you kick in tax on selling you burgeon forth 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 preferably and after market capitalization o f the union remains the equal and dilutio! n 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 coincide 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, specialise it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay