The bard of directors of Freestroke Swim Centres Inc. is meeting to address the concerns of shareholders.

The bốard of directors of Freestroke Swim Centres Inc. is meeting to address the concerns of shareholders. Shareholders have submitted the following questions for discussion at the board meeting. Answer each question.
1. Why did Freestroke organize as a corporation if a corporation must pay an additional layer of income tax?
2. How are preferred shares similar to common shares? How are preferred shares similar to debt?
3. Would Freestroke investors prefer to receive cash dividends or stock dividends? Explain your reasoning.