Discussion question 3 for Intermediate Accounting II

1. Stockholders' equity is an important heading in a corporate balance sheet. Let's begin thediscussion of stockholders' equity by asking: How is the stockholders' equity section of a corporatebalance sheet different from that in a single-owner business?

2. Let's talk about dividends! Why do companies give dividends? Are companies required todeclare dividends? What factors have to be considered by a company before giving a dividend?