Corporate: It is the form of business organization in which business has its own separate legal entity. It gives the owner of the business the advantage of having limited liability. Preferred stock : It is a sort of stockholder’s capital which have special right as comparison to equity to shareholder, like fixed dividend and preferential treatment in event of liquidation and payment of dividend. To explain : Book value of share is calculated for a corporation with no preferred stock and limitation of using book value per share.

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Chapter 11, Problem 19DQ

To determine

Corporate:

It is the form of business organization in which business has its own separate legal entity. It gives the owner of the business the advantage of having limited liability.

Preferred stock: It is a sort of stockholder’s capital which have special right as comparison to equity to shareholder, like fixed dividend and preferential treatment in event of liquidation and payment of dividend.

To explain: Book value of share is calculated for a corporation with no preferred stock and limitation of using book value per share.

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