Subject: Chemistry    / General Chemistry

Principles of Accounting II

ACC – 291 Week 3

Discussion Question 1:

Why does a company choose to form as a corporation?

What are the steps required to become a corporation?

What are the advantages and disadvantages of the corporate form of doing business?

Discussion Question 2:

Why is preferred stock referred to as preferred?

What are some of the features added to preferred stock that make it more attractive to investors?

Would you select preferred stock or common stock as an investment? Why?

Provide stock details from your Annual Report.

Discussion Question 3:

What are the different types of dividends corporations may issue?

When should a corporation pay dividends? Do you prefer a stock dividend or a cash dividend? Why?

Did your Annual Report discuss or pay dividends?

Discussion Question 4:

Why do corporations buy back their own stock?

What does it tell you about the corporation?

What effect does the purchase have on the price of a company’s stock?

Does your Annual Report discuss stock repurchase or balances of treasury stock?

· ACC 291 Week 3 Individual Exercise E 10-6, E 10-8, E 10-18,ProblemP10-3A, P10-6A

· ACC 291 Week 3 Team Assignment LT Reflection

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