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Why is share of common stock an asset for its owner and liability for corporation?
A single share is a part of capital of the company so if anybody purchase the share of company that person is investing in the share capital of company and providing the company necessary money to operate that's why it is the investment of the owner of share which is called then the shareholder of company and that shares becomes the asset of the shareholders and while company is acquiring capital in the shape of shares that's why it is the liability of the corporation to pay back that amount of money back to the shareholders at certain time or at liquidation as written in the agreement to raise the capital through share issue.
What else can I help you with?
Is cash considered an asset, liability, or owner's equity on a company's balance sheet?
Cash is considered an asset on a company's balance sheet.
What does unlimited liability mean to the owner of a business?
The owner has personal liability for anything that happens. That is whi it is good to have an LLC (limited liability corporation). Mine cost $60 to set up on the state's web site. If a customer is killed in my shop all I can lose is the business, not my home.
What is the chief disadvantage of the sole proprietorship as a form of business organization when compared to the corporate form?
The chief disadvantage of a sole proprietorship compared to a corporation is the unlimited personal liability faced by the owner. In a sole proprietorship, the owner's personal assets can be at risk if the business incurs debt or legal issues, whereas a corporation offers limited liability protection, safeguarding the owner's personal assets from business liabilities. Additionally, sole proprietorships may have more difficulty raising capital and may lack the longevity and continuity that a corporation can provide.
What is cosignee?
Partial owner of an asset
What does letters after property owner name mean?
corporation or limited corporation
Why is a share of Oil and Gas Development Corporation an asset for its owner and a liability for OGDC?
Why is a share of OGDC is an asset for its owner and a liability for OGDC?
Why is a share of OGDC common stock an asset for its owner and a liability for OGDC?
why is share of OGDC common stock an asset for its owner and a liability for OGDC?
Is owner's capital a current asset or other asset?
None!- Its liability.
Is owner's capital asset?
no owners capital is not an asset its an internal liability for the company
Is owner capital an asset?
no owners capital is not an asset its an internal liability for the company
Are dividends owner's equity or asset or liability or revenues?
If your divident is the result of your own investment, it is an asset. Divident payable is a liability.
Is revenue an asset liability or owner's equity?
sales revenue is owner's equity
What is Basic Accounting formula?
asset = liability + owner's equity
Is wage expense asset liability or owner's equity?
neither
Is capital an asset or a liability?
No,Capital is owner's equity i,e owner's contribution to business.
Is a capital a asset or liability?
No,Capital is owner's equity i,e owner's contribution to business.
What will increase one asset and decrease another asset with no effect on liability or owner s equity?
Purchase an asset on cash will increase the purchased asset while reduce the cash amount and no impact on liability or equity section.
