Slide 11 Chapter 1 Stockholders? Equity: Paid-in Capital Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc,, 1999
?The McGraw-Hill Companies, Inc., 1999 Slide 11-1 Irwin/McGraw-Hill Chapter 11 Stockholders?Equity: Paid-in Capital
Slide 11-2 Corporations An entity created by law Privately, or Existence is separate from Ownership Closely, Held owners can be Q°0 0 Has rights and prIvileges. Publicly Held Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999
?The McGraw-Hill Companies, Inc., 1999 Slide 11-2 Irwin/McGraw-Hill Corporations Existence is separate from owners. An entity created by law. Has rights and privileges. Privately, or Closely, Held Publicly Held Ownership can be
Slide 11-3 Why Businesses Incorporate Stockholders have no personal liability Transferability of Privately, or ownership. Closely Held Professional Q°0 0 management. Continuity of existence Publicly Held Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999
?The McGraw-Hill Companies, Inc., 1999 Slide 11-3 Irwin/McGraw-Hill Why Businesses Incorporate Stockholders have no personal liability. Privately, or Closely Held Publicly Held Transferability of ownership. Professional management. Continuity of existence
Slide I Publicly Owned Corporations face Different rules Disclose financial information Financial statements prepared in accordance with GAAP CPAs must audit the financial 4R飞 statements III Must comply with federal securities laws Must submit financial information for sec review Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999
?The McGraw-Hill Companies, Inc., 1999 Slide 11-4 Irwin/McGraw-Hill Disclose financial information. Financial statements prepared in accordance with GAAP. CPAs must audit the financial statements. Must comply with federal securities laws. Must submit financial information for SEC review. Publicly Owned Corporations face Different Rules
Slide 11-5 Rights of stockholders Voting (in person or by proxy) 0 Proportionate Rignts distribution of dividends Proportionate Stockholders distribution of assets in a liquidation Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc., 1999
?The McGraw-Hill Companies, Inc., 1999 Slide 11-5 Irwin/McGraw-Hill Rights of Stockholders Stockholders Rights Voting (in person or by proxy). Proportionate distribution of dividends. Proportionate distribution of assets in a liquidation