Aritzia is a retail company that designs and retails womens fashions and accessories. Its first store was

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Aritzia is a retail company that designs and retails women’s fashions and accessories. Its first store was opened in 1984 in Vancouver by its founder, Brian Hill. Since then, it has expanded to more than 75 stores across Canada. It also sells its goods online through its website, www.aritzia.com. Aritzia’s stock was first sold on the Toronto Stock Exchange in October 2016.


Instructions

a. Instead of selling shares on the Toronto Stock Exchange, Aritzia could have raised funds by operating as a partnership. What factors might have influenced its decision to form as a corporation?

b. Look at Aritzia’s corporate financial statements reproduced in Appendix A at the back of this textbook. In what ways would partnership financial statements have been different from these corporate statements?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Accounting Principles Volume 2

ISBN: 978-1119502555

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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