| A | B |
|---|
| Advantages of Corporation 1 | separate legal existence |
| Advantages of Corporation 2 | Shareholders have limited liability |
| Advantages of Corporation 3 | Transferable ownership rights—secondary markets |
| Advantages of Corporation 4 | Continuous life |
| Advantages of Corporation 5 | Professional management |
| Advantages of Corporation 6 | Easier to raise large amounts of capital |
| Disadvantages of Corporation 1 | Double taxation |
| Disadvantages of Corporation 2 | Additional government regulation |
| Disadvantages of Corporation 3 | Potential for managers to enrich themselves at the expense of some of the owners |
| Issuance of C/S 1 | Some companies never pay a dividend |
| Issuance of C/S 2 | May need to use both equity and debt |
| Issuance of C/S 3 | Publicly traded stock is easily transferable |
| Issuance of C/S 4 | dividends are not deductible, control of corporation may be diluted, and EPS may be lower |
| Authorized Shares | max # of shares that can be issued |
| Issued Shares | # of shares that have been transferred to shareholders at one time or another |
| Outstanding Shares | # that are still in the hands of shareholders (does not include TS) |
