Accounting 2

Exhibit A die hards
Rule #1:
There are four types of business organizations.
1) Sole proprietorship
2) Partnership (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 activity 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 continued existence depends upon the corporate statutes of the state in which it is incorporated.
Rule #5:
The characteristics that distinguish a corporation from proprietorship and compact are:
a) The corporation has separate legal existence from its owners.
b) The conduct holders have limited liability.
c) Ownership is shown in shares of capital tenor which are transferable units.
d) It is relatively easy for a corporation to obtain 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 elected by the filiation holders.
g) The corporation is subject to many government regulations.
h) The corporation must even off income on its earnings. The stockholders represent tax on dividends.



The result is double taxation because you pay tax on selling you stock 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 earlier and after market capitalization of the company remains the kindred 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 harmonize 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, tell it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper