Discuss the Process of Incorporation in Your Jurisdiction, Including Practical

question 55

Essay

Discuss the process of incorporation in your jurisdiction, including practical tips for maximizing the advantages offered by this form of business organization.

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Definitions:

Depreciation Expense

Methodically dispersing the cost of a physical asset over its serviceable lifetime.

Dividends

Distribution of a portion of a company's earnings, decided by the board, to a class of its shareholders.

Closing Entries

Journal entries made at the end of an accounting period to transfer balances from temporary accounts to permanent accounts, closing out the period.

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions to shareholders, reinvested in the business or kept as reserve.