1. What are the advantages of the Corporate form of organization?

• Limited liability

• Ease of raising capital

2. What are the disadvantages?

• The state and federal governments impose extensive reporting requirements.

• Double taxation.

3. What other types of organizations are there?

• Not-for-profit organizations

• Publicly held for profit organizations (e.g., C corporations)

• Privately held for profit organizations

• Limited liability companies (LLCs)

• Limited liability partnerships (LLPs)

4. What were the accounting and reporting implications of COVID-19?

The Coronavirus Aid, Relief, and Economic Security (CARES) Act included the provision for something called the Payroll Support Program (PSP), which provided loans to eligible businesses (e.g., airlines) that incurred losses related to COVID-19.

To receive assistance, the borrowing company had to issue warrants to the Treasury Department along with the underlying debt instrument.