When forming a company, the options are sole proprietor, partnership, and
corporation. Most choose incorporation. Why is the corporate form seen to be
best? What rights do the stockholders have?

Q2:When raising capital sometimes the decision is to sell stock. What are the
pros and cons of selling stock? Is it better to sell common or preferred stock?
Why?

Q3:Go to Course Home and review the Course Project tab. In this graded
discussion, we will be examining the process of evaluating the financial
performance and health of a company with the use of problems and exercises
from your textbook. The goal is to cover all of the requirements to ensure an
opportunity for your successful completion of Course Project 2.
Let’s start with gaining an understanding of the Statement of Cash Flows.
From Exercise 12-17A select one of the journal entries and explain how the
accounts in the journal entry impact the statement of cash flows.

Q4:To give you some practice to complete the Project 2 successfully, I want
you to work on Exercise 12-20A – develop the cash flows from operating
activities. Hint: Look at page 702 of the text (Chapter 12) for an example of a
Statement of Cash Flows (Google’s) and page 706 for the guideline to
construct one.

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