November 8, 2024 
The first episode of Accounting Explained has now been released. In this episode, we discuss the features of a corporation, including the advantages and disadvantages. You can access this podcast episode at this link.
Background: Professor Jill Mitchell and I have teamed up to create a series of podcasts for introductory financial accounting. Our podcast is called “Accounting Explained.” Accounting Explained podcast episodes will generally be short (eight to ten minutes) and are designed for students in introductory accounting. Additionally, the podcast is available on Apple, Spotify, Amazon Music/Audible, iHeartRadio, and more. Just search for “Accounting Explained” (it may take up to 24 hours for the podcast episode to appear on some services.
Let us know what you think in the comments!
Discussion Questions
- Why is it significant that a corporation is considered a separate legal entity? How does this benefit both the corporation and its shareholders?
- How does the continuous life feature of corporations contribute to their stability? Can you think of any downsides to this characteristic?
- How does limited liability encourage people to invest in corporations? What might be some risks or ethical concerns related to limited liability?
- Discuss the potential conflicts that could arise from the separation of ownership and management in a corporation. What governance practices might help to align the interests of shareholders and managers?
- How does double taxation impact the way corporations and shareholders handle profits? Do you think there could be a better taxation structure for corporations?
- Why are corporations subject to more government regulation than other business forms? How does transparency in financial reporting benefit shareholders and the public?
- Why might a corporation choose to fund growth by issuing stock rather than taking on debt? What are the potential benefits and risks of this choice?
