Corporations 🏢

🎯 Learning Targets

• Explain how a corporation is formed
• Describe how a corporation is organized
• Explain how stocks and bonds differ
• Describe the advantages and disadvantages of organizing a corporation

⏰ What We Did

• Used the instructional notes from Lesson 2, Part 3 to answer the following questions in complete sentences:

1. Define corporation, stock, share, dividend, common stock, preferred stock, corporate bond, principal, and interest.
2. Legally, how is a corporation treated as an individual?
3. How are corporate bonds different from shares of stock?
4. What advantages does incorporation give to shareholders and to the company?
5. What disadvantages does incorporation give to shareholders and to the company?