BUS 3301 – Financial Accounting Learning Journal Unit 2

Description

Principles of Accounting, Chapter 14: Corporate Equity Accounting: http://www.principlesofaccounting.com/chapter-14/

Please review this chapter’s “Objectives” and “Key Terms” before and after reading. After you complete the reading, be sure to take this chapter’s “Fill in the Blanks” and “Multiple Choice” Self-Quizzes.

In Chapter 14, the advantages and disadvantages of corporate organization are discussed. In addition, the chapter discusses the difference between the rights of stockholders of common stock, versus the rights of stockholders who own shares of preferred stock.

Learning Journal

The Learning Journal is a space where you should reflect upon what was learned during the week, how it applies to your daily life, and how it will help you with your life/career goals.

For this weekàreflection, please write three complete and well-composed paragraphs in which you discuss, as an example, a company that currently operates where you live. Describe how the company is governed. That is, is it a corporation? If so, who do you think the stockholders are? Do they live where you do, or do they live somewhere else? If the company is not a corporation, what type of organization does it have and how is it different from a corporation?

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Can you only respond to this question?You can write the answer here.You’ve described well the benefits and drawbacks of incorporating a business and did touch on several aspects while mentioning them. But what about the risks and liabilities of operating a store as a sole proprietor and how would you address such concerns by becoming incorporated?

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