Unlimited liability is one of the advantages of the corporate structure for an organization.It is easier to achieve continuous life using the corporate structure for an organization.Double taxation refers to the fact that a corporation pays tax on its taxable earnings and the shareholder also pays personal tax on the dividend income they receive from the corporation.All shares issued by a corporation have voting rights.Shareholders in a corporation are personally liable for the debts of the corporation.Objective: 13-1 Identify the characteristics of a corporation A corporation is a separate legal entity apart from its owners.ĬPA Competency: 1.1.1 Evaluates financial reporting needs.(Horngren)Ĭhapter 13 Corporations: Share Capital and the Balance Sheet Sample Chapters *you will get test bank in PDF in best viewable format after buy*Īccounting, Vol. Instant Download with all chapters and Answers
