Question

The reporting of financial conditions at the corporation so that can be evaluated. b. Legal protections for shareholders so that of the law who attempt to take advantage of shareholders can be for misbehavior and victims can recover damages for any associated losses.

Answer 1

Answer:

a) Financial Statements

b) Limited Liability

Explanation:

a) The reporting of financial conditions at the corporation so that it can be evaluated, is the aim of preparing financial statements. Financial statements are periodic reports prepared monthly or annually to show the financial health of a company. They are made up of the statement of profit or loss, statement of financial position, cash flow statements and statement of changes in equity.

b) Legal protections for shareholders so that they are not taken advantage of is the purpose of limiting the liability of shareholders. Limited liability relates to a shareholder's financial liability being limited to a fixed amount not exceeding his investment in the company or partnership. Nevertheless every shareholders is liable for his own actions personally.