A corporation with $10 par common stock issues a small stock dividend. the capitalization of retained earnings is equal to the market value of the shares to be distributed.
A business enterprise conducts business, realizes net income or loss, will pay taxes, and distributes earnings to shareholders. The earnings of a corporation are taxed to the business enterprise when earned, after which are taxed to the shareholders when disbursed as dividends. This creates a double tax.
A company is a preferred connection with a business while a business enterprise is a reference to a particular form of business entity. A corporation is owned by way of its shareholders while an employer can be owned both through the business proprietor in complete (sole proprietorship), numerous individuals (partnership), or others (shareholders).
The corporation of an organization is shareholders (also known as stockholders) who gain hobby in the commercial enterprise by using buying stocks of stock. Shareholders opt for a board of directors, who're liable for dealing with the agency.
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