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?