Corporations must hold meetings for stockholders and keep accurate records of business transactions. How are these regulations beneficial for the corporation’s stockholders?

The answer is below

Explanation:

A stockholder often referred to as shareholder, is a legal term that describes an individual, company, or institution that own minimum of one share of a company’s stock, otherwise known as equity. Thus, since stockholders are integrated owners in a company, they reap the benefits of a business’ success. Such rewards come are in varying forms of increased stock valuations, it could be financial profits distributed as dividends. At the same time, during company loss, the share price drops accordingly, which makes shareholders to lose money, or some level of reductions in portfolios’ values.

Keeping accurate records of business transaction of a corporation, can be beneficial to stockholders in the following ways:

1. It gives the stockholders to inspect and assess the company's book and records.

2. It enhances their knowledge on the level of entitlement from the corporation they can demand for.

3. It helps them to know when to claim a proportionate allocation of proceeds if and when their company liquidates its assets.

4. It gives the stockholders the opportunity to assess the company's financial records, and to know which proposals to vote for to benefits the company.

The correct answer to this open question is the following.

Corporations must hold meetings for stockholders and keep accurate records of business transactions. These regulations are beneficial for the corporation’s stockholders in that the regulations give certainty that their investments in the corporation are being administered in the correct form by the directives of the company. These meetings with stakeholders allow investors to have specif look at the way the corporation is doing, they can have access to financial information, accounting records, in order to fully comprehend the way the company is being led.

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