1. What are some of the reasons why corporations invest in debt and stock securities? What are stock investments? Explain the accounting for stock investments.
2. How can companies control the value of their stock?
3. Cash dividends are the most common forms of dividends paid, although they may also be paid in other forms of assets, there are normally three conditions that a corporation must meet to pay a cash dividend. What are these conditions? Why are they important?
4. The most challenging aspect of the business is that your liable for our own debts and if we had to do it all over again, we would have chosen to form a Limited Liability Corporation (LLC). Why do you think an LLC would have been a better option? Why not?