Chapter 6 Common Stocks e Corporation o The corporation is the most important form of business organization all over the world. That refer to a business created as a distinct legal entity composed for one or more individuals or entities o The relative ease of transferring ownership, the limited liability for business debts, and the unlimited life of the business are the reasons why the corporate form is superior when it comes to raising cash. e The disadvantage of corporation is, since a corporation is a legal"person,, it must pay taxes. Money paid out to stockholders in the form of dividends is taxed again as income to those stockholders. this is double taxationChapter 6 Common Stocks Corporation ⚫ The corporation is the most important form of business organization all over the world. That refer to a business created as a distinct legal entity composed for one or more individuals or entities. ⚫ The relative ease of transferring ownership, the limited liability for business debts, and the unlimited life of the business are the reasons why the corporate form is superior when it comes to raising cash. ⚫ The disadvantage of corporation is, since a corporation is a legal “person”, it must pay taxes. Money paid out to stockholders in the form of dividends is taxed again as income to those stockholders. this is double taxation