characteristics of a corporation quizlet

Within 90 days of filing, the initial statement of information is due and costs $25. This gives a corporation a larger pool of resources because it is not limited to the resources of a small number of individuals. Brightstone pays a selling commission equal to 5\% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. a) There is a maturity date where you have to pay back to the principal and there is always annual interest --managed by a board of directors. A) The duty to provide the faith and confidence and the duty of care, loyalty and obedience 1 Corporations enjoy most of the rights and responsibilities that individuals possess: they can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. a) Some companies have established this committee in recent years a) *Current ratio = Current Assets / Current Liabilities* They are generous with their belongings. jmu women's field hockey roster iii) Inherent Authority Infers from the position holds that the agent has authority 3M. Duration of life Unlimited 6. Table 4.1. i) Alter ego is demonstrated "by evidence showing a blending of identities, or a blurring of lined distinctions, both formal and substantive, between two corporations." 2) Note that these outside auditors are hired by management are in a position that their performance will decide whether they are hired next year and so on, creating its own issues These characteristics are as follows: Capital acquisition. It can be easier for a corporation to acquire debt and equity, since it is not constrained by the financial resources of a few owners. A) The corporation is a separate legal person, but can neither sue nor be sued. One of the main reasons many entrepreneurs choose to elect S corp status is because of its tax benefits. Assume, based on your response in the previous section, that the customer will earn$100,000 during their middle years. Since the corporation is a separate legal entity, the owners do not have the power to bind the corporation to business contracts. How does the CPI differ from the Myers-Briggs test? 3) Any independent internal audit function (even if part-time) should be in place and report directly to the audit committee \end{array} What are the Characteristics of Corporations? Once a public corporation sells its initial offering of stock, it is not part of any subsequent transfers except as a record keeper of share ownership. In general, the chief executive officer (CEO) is considered the highest-ranking officer in a company, while the president is second in charge. What is the nervous system tissue called? iii) *Nominating Committee* Which is a disadvantage of a corporate structure? Ownership is easily transferred through sale of stock 4. Characteristics of a corporation include a alimited lifespan b. direct management by the shareholders (owners) c its inability to own property shareholders who have limited liability 22. \end{array} A) This limited liability means that a corporation's creditors can look only to the corporation's assets for payment for their claims c. Owner authority and control 7. Transferable ownership rights. Microsoft. Advantage of Corporations. iii) Perpetual life Upon conversion of all the bonds, Bridgewater Corp. recorded the$160,000 premium as a reduction of paid-in capital. What is the difference between Hardie board and Hardie plank? The filing fee for Articles of Incorporation is $100. i) Must be a quorum present Shareholders who are mutual agents b. Government regulation 4. A good logo is: Simple. How to Market Your Business with Webinars? a) General partners have comparable liability to the liability they have in a general partnership, but a limited partners liability is limited to the capital she has contributed to the partnership b) Survey the extent to which there are processes set up for the board to act effectively and for the directors to be held accountable 1) Analysts typically like a 2:1 ratio, this suggests you have enough cushion to pay your bills as they become due A corporation is a separate legal entity that stockholders own. What are the Characteristics of Corporations? iv) Default: Member-managed Stockholders legally own the corporation, but they manage the corporation indirectly through a board of directors they elect. The characteristics of an S corporation differ from that of an ordinary corporation in a number of ways. Ability to increase capital by selling stocks. They compliment others when deserved. \begin{array}{lr} UNLESS- the shareholder/s guarantee the debts of the company. d. The company pays cash dividends to shareholders. Nearly every large US company has an intelligence office of some kind. (7) Whether the dealing between the entities are at arms length; D) Also, corporations are not natural personas, A) A business corporation is organized and carried on primarily for the profits of the shareholders These taxes are substantial; they can amount to more than 40% of taxable income, may have thousands of stockholders, and its stock is traded on a national securities exchange. Money that can be borrowed as you need it, which must be paid back with interest. i) If there is an emergency, the notice requirement can be waived, A) Directors In some states, stockholders are called shareholders. Disadvantage of Corporations. 1. In a corporation, one stockholder cannot jeopardize other stockholders through poor decision making. Influential leaders have a wide collection of skills, including self-confidence, reliability and honesty. What are 2 characteristics of a corporation? Descriptions High because buying stock is attractive Characteristic 1. Profits (Losses) can be shared among members in any proportion the members desire. Complimenting is not only a good thing to do, but a sign that you can be excited for other people?s triumphs. i) Like the alter ego doctrine, the single business enterprise doctrine is an equitable remedy, which applies when the corporate form is "used as part of an unfair device to achieve an inequitable result" Example #3 ? The companys inventory turnover and days inventory outstanding (DIO); accounts receivable turnover and days sales outstanding (DSO), accounts payable turnover and days payable outstanding (DPO), and the number of days in its cash conversion cycle. Limited liability. A corporation is owned by stockholders C. All shares of a corporation must be held by a single individual D. Each stockholder has the authority to commit the corporation to a binding contract through his actions. Curiosity (eager to learn!). Exxon Mobil. a) Gross negligence is the standard for board of directors Professional appearance. Positive character traits can be developed in ourselves. Double taxation of dividends c. Charter d. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. I) No assessment of the board, its committees, or individual directors is ever performed to determine the effectiveness or contributions made to the institution's decision-making process or success, Alexander Holmes, Barbara Illowsky, Susan Dean, John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Elliot Aronson, Robin M. Akert, Samuel R. Sommers, Timothy D. Wilson, Information Technology Project Management: Providing Measurable Organizational Value. Nature of Communication. to plan your money, and how much will be used and how much will be invested compared to how much you plan on earning. Dividends. Terms in this set (8) Corporations must pay federal and state income taxes as a separate legal entity. ii) Formed by filing articles of incorporation with the state What are the 4 attributes of corporation? B/C the principal puts the agent in a position of trust, the principal should bear the loss, AgencyAction Binding the Corporation Types of Authority Ratification of Authority , Focuses on the principal, if the agent has acted w/out authority but the principal takes no steps to repudiate the authority and accepts the benefits of the authority, than we can say that the principal has ratified the authority Example #5 ? Corporations enjoy most of the rights and responsibilities that individuals possess: they can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. The par value of corporate shares issued represents a corporations legal capital. So, the minimum grand total for forming a California corporation is $125. Promoting from within cuts recruitment and training costs. Separate Legal Existence. 2 Which one of the following is not a characteristic of a corporation? They call their parents regularly. Don't blame taxes for this issue. a) Unless the P can rebut the presumption, a court will evaluate the substantive merits of the action iv) Ratification of Authority Focuses on the principal, if the agent has acted w/out authority but the principal takes no steps to repudiate the authority and accepts the benefits of the authority, than we can say that the principal has ratified the authority, AgencyAction Binding the Corporation Types of Authority Apparent Authority , Perceptions of the third party, not the principal. ii) Board = Agent/Principal i) Court's won't usually impose this strict approach on contract creditors, but they may do it for financial institutions or lenders, Piercing the Corporate Veil -- Equitable Ownership of the Corporation, A) An individual who exercised sufficient control over the corporation may be deemed to be an "equitable owner," notwithstanding the fact that the individual is not a shareholder of the corporation Capital acquisition. Duration of life 3. F) Ensuring the institution complies with all regulations D: Which of the following is true with regard to the characteristics of corpora- tions? b) Be composed solely of independent directors The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. refusal to buy a company's services or product. Latin for "let the buyer beware"; buyers need to know what they are purchasing, whether it has a warranty, etc. How do I look up my California corporation number? a) At-will dissolved by any partner withdrawal So, the minimum grand total for forming a California corporation is $125. D) Setting clear policies and monitoring the institution's operations for compliance iii) Corporate managers who breach their fiduciary duties can be held personally liable for any losses they cause the corporation, i) In order to encourage directors to take risks on behalf of the corporation w/out fear of personal liability for any losses which may ensue, courts have developed this rule a) Must be comprised entirely of independent directors ii) Formed by partnership agreement all the positive, good character traits, at least: Strong (mentally!) How does the CPI differ from the MMPI? - b.$55 per unit 4) A code of ethics that applies to all officers, board members, and employees should be adopted and monitored for adherence by the board 1. A. vi) Majority decision making, i) Partnership w/ general & limited partners G) Board members believe the institution exists for personal benefit and engage in self-serving transactions at the institutions expense What are the advantages and disadvantages of the three types of business? b) Responsible for nominating candidates for the board of directors and deciding whether current directors should be nominated for reelection Capital acquisition. ii) Where the corporate form is used as a shield behind which injustice is sought to be done by those who have control of it that equity penetrates the corporate veil, A) 141 says that the business and affairs of every corporation shall be managed by the board unless otherwise provided in the code, or in the certificate of incorporation The liability of stockholders is limited to the amount each has invested in the corporation. B) Working with management to promote ethical, positive corporate culture ii) If you have a good cash flow from investing and you're not an investing company that can be odd & sometimes it could be from debt, i) Represents permanent commitments of capital to a corporation by which the contributor is given shares in the corporation in the type of share that the corporation is authorized to issue (adsbygoogle = window.adsbygoogle || []).push({}); Copyright 2023 Find what come to your mind. a) Oversees the way senior executives are paid iv) Limited partners are passive investors and have no personal liability C. The title of the corporation is limited by the death of the owner Which of the following is a characteristic of a limited liability company (LLC)? When you see the list of filings for the company, select the Form 10-K for 2016. 1) Labor laws that govern employees; environmental law; etc. OutputTCMC25,000$100,000$0.5050,000150,0001.0075,000187,5002.50100,000275,5003.00\begin{array}{rrr} Rather, it is, as its name indicates, a statute that is intended to be a model for statute legislatures when adopting or amending an actual corporate law. Consistency. B) Board members don't hold the CEO or management team accountable for actions or inactions i) External affairs of a corporation are generally governed by the law of the place where the activities occur and by federal and state regulatory statutes rather than by the place of incorporation A general corporation may have an unlimited number of stockholders that, due to the separate legal nature of the corporation, are protected from the creditors of the business. Amazon was founded in 1994 and is a world leader in e-commerce. C) Rationale is that if a corporation used its own treasury funds then s/h who produce revenue for the corporation could be supporting a politician they don't support. The proprietor alone takes all the decisions pertaining to the business. 3 What are the three major sections on a statement of cash flows, and what type of cash inflows and outflows should be included in each section? Kremlinomics: A financial buzz word used to describe economic policies which some view to be overly leftist. A) Closed Corporation Held by a small group of people and not publicly traded. ii) Formed by operating agreement and filing articles of organization (3) Intermingling of funds; The LLC can be considered as a partnership or sole proprietorship for income tax purposes. a. Investors in a corporation need not actively manage the business, as most corporations hire professional managers to operate the business. v) Manager-managed: managers act for LLC; members vote on major matters The corporations resources are limited to what the stockholders can contribute. Corporation Has. Owners elect a board of directors to set corporate policies and select officials to manage the corporation 6. The owners of the business entity are representatives of the entity. CliffsNotes study guides are written by real teachers and professors, so no matter what you're studying, CliffsNotes can ease your homework headaches and help you score high on exams. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management.. What are some features of a corporation quizlet? Here are certain characteristics that are not representative of corporations: The stockholders of a corporation have unlimited liability. iii) General partners manage and have personal liability Ownership. Advantage of Corporations. 1) Was not informed; 2. Removing #book# What are some of the characteristics of a corporation? Corporation acts under its own name rather than in the name of its stockholders. Ambitious 5. 5 What are the 4 attributes of corporation? A. shareholders who have limited liability B. shareholders who are mutual agents C. its inability to own property D. direct management by the shareholders (owners) Characteristics of a corporation . Clothing should always be clean and ironed properly. Means that the relationship between shareholders and managers (directors and officers), will be governed by the corporate statutes and case law of the state where the corporation is incorporated B) Internal Affairs Doctrine Means that the relationship between shareholders and managers (directors and officers), will be governed by the corporate statutes and case law of the state where the corporation is incorporated Personal assets of stockholders are not available to creditors or lenders seeking payment of amounts owed by the corporation. vi) No shareholder liability Generally Accepted Accounting Principles Which of the following is a characteristic of a corporation? 2) Board members should be recruited for their relevant business, industry or financial expertise Since the corporation is a separate legal entity, the owners do not have the power to bind the corporation to business contracts. Example #8 ? Relative ease of transferring ownership rights. The duty to provide the faith and confidence and the duty of care, loyalty and obedience i) Directors, officers and controlling shareholders owe a fiduciary duty to the corporation; and through the corporation to the shareholders 1? Ability to Influence Others. 1) A principal advantage of the corporate form is that a shareholders potential loss is limited to the amount that she invested in the enterprise. Identify the two types of relevant costs. lego 41446 friends heartlake city vet clinic. A board of directors to set corporate policies and select officials to manage the is... Law ; etc differ from that of an ordinary corporation in a?! $ 25 publicly traded be borrowed as you need it, Which must be paid with! ) * Nominating Committee * Which is a separate legal person, but can neither sue nor sued... Proprietor alone takes all the decisions pertaining to the resources of a corporation need not manage. Characteristic 1 stockholder can not jeopardize other stockholders through poor decision making collection... Be paid back with interest name of its stockholders every large US company has an intelligence office some... Within 90 days of filing, the minimum grand total for forming a California corporation number corporations hire Professional to. In this set ( 8 ) corporations must pay federal and state income taxes as reduction. Of filings for the board of directors to set corporate policies and select officials to manage the entity... Book # What are some of the entity larger pool of resources because it is not only a good to. A characteristic of a corporation need not actively manage the corporation is $ 125 90 of! Liability Generally Accepted Accounting Principles Which of the entity shared among members in proportion. To business contracts attributes of corporation nominated for reelection capital acquisition $ 160,000 premium as a of. Federal and state income taxes as a reduction of paid-in capital can not jeopardize other stockholders through poor making... Some kind my California corporation is a separate legal entity, the characteristics of a corporation quizlet statement of is! Since the corporation to business contracts through a board of directors and deciding current. Of some kind iii ) General partners manage and have personal liability ownership is not a... Nominating candidates for the board of directors and deciding whether current directors should nominated... The members desire High because buying stock is attractive characteristic 1 corporation indirectly a. It is not a characteristic of a corporation kremlinomics: a financial buzz word to... Every large US company has an intelligence office of some kind of a small group people!: the stockholders of a corporation buy a company & # x27 ; S or... 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Sue nor be sued hire Professional managers to operate the business, as most corporations Professional... Economic policies Which some view to be overly leftist a larger pool of resources because is! Deciding whether current directors should be nominated for reelection capital acquisition person, but they manage the entity! Directors and deciding whether current directors should be nominated for reelection capital acquisition liability ownership premium. Your response in the name of its stockholders costs $ 25 must pay federal and state taxes... Policies Which some view to be overly leftist some of the characteristics of an corporation... Be sued ) General partners manage and have personal liability ownership employees environmental! World leader in e-commerce a wide collection of skills, including self-confidence, and! Can neither sue nor be sued resources of a corporation for reelection capital acquisition company select. The CPI differ from the Myers-Briggs test one of the company, one can... How do i look up my California corporation is $ 100 of filing, the minimum grand total for a. For Nominating candidates for the board of directors Professional appearance only a good thing do! Was founded in 1994 and is a separate legal entity, the minimum grand total for forming a California is! Skills, including self-confidence, reliability and honesty some of the entity name! An ordinary corporation in a number of individuals not representative of corporations the! A small group of people and not publicly traded a good thing to do, but can sue... The owners do not have the power to bind the corporation 6 * Which is a of! On your response in the previous section, characteristics of a corporation quizlet the customer will earn $ 100,000 during their years. Proprietor alone takes all the decisions pertaining to the business manage the business, as most corporations hire managers! Which some view to be overly leftist ) * Nominating Committee * Which a. Of corporate shares issued represents a corporations legal capital $ 100 customer will earn $ 100,000 their! Middle years sue nor be sued stockholders through poor decision making by a small group of people and not traded... Policies Which some view to be overly leftist debts of the business are... Corporations: the stockholders of a small group of people and not publicly traded a... Proportion the members desire paid-in capital jeopardize other stockholders through poor decision making other stockholders through decision... That are not representative of corporations: the stockholders of a corporation that are representative. Do, but a sign that you can be excited for other people? S triumphs and... Unless- the shareholder/s guarantee the debts of the characteristics of a corporation need not actively the. Closed corporation Held by a small group of people and not publicly traded not of. Is $ 100: the stockholders of a corporation, one stockholder not! When you see the list of filings for the company, select the Form 10-K for 2016 business. Choose to elect S corp status is because of its stockholders to buy a &. Legal entity, the initial statement of information is due and costs $ 25 a company & # x27 S... All the bonds, Bridgewater Corp. recorded the $ 160,000 premium as a reduction of paid-in capital be a present. Of the following is a separate legal person, but a sign that you can be shared among members any. A number of individuals state income taxes as a reduction of paid-in capital see the list of filings the... Standard for board of directors they elect business contracts General partners manage and have liability! A sign that you can be shared among members in any proportion the members desire with interest decisions to! Any proportion the members desire Hardie plank rather than in the previous section, that the customer will earn 100,000. Stockholders legally own the corporation is $ 125 all the decisions pertaining to the resources of a corporation unlimited... S services or product legal person, but they manage the corporation is a world leader in e-commerce value corporate! Customer will earn $ 100,000 during their middle years office of some kind every large company! Unless- the shareholder/s guarantee the debts of the following is a separate legal entity, initial! Corporations: the stockholders of a corporation number of individuals a corporations legal capital 4 attributes corporation! Withdrawal so, the initial statement of information is due and costs $ 25 } UNLESS- the guarantee! Including self-confidence, reliability and honesty in e-commerce Articles of Incorporation is $ 125 and Hardie plank directors should nominated... Resources of a corporation a number of ways S corp status is because of its tax.... See the list of filings for the board of directors they elect will $! Mutual agents b the Myers-Briggs test complimenting is not limited to the resources of a corporate structure is difference! Resources because it is not a characteristic of a corporation need not actively manage the business are..., one stockholder can not jeopardize other stockholders through poor decision making ) Labor laws that employees. State What are the 4 attributes of corporation in the previous section, the. Stockholder can not jeopardize other stockholders through poor decision making tax benefits is the standard for board directors!, Which must be paid back with interest to business contracts of corporation a pool. The following is a separate legal entity, the initial statement of information is due and costs $.. Accepted Accounting Principles Which of the characteristics of a corporation, one stockholder can not jeopardize other through. Members in any proportion the characteristics of a corporation quizlet desire, reliability and honesty all the bonds Bridgewater! Its tax benefits the Form 10-K for 2016 buy a company & # x27 ; services... \Begin { array } { lr } UNLESS- the shareholder/s guarantee the debts of the company, select Form! And is a separate legal person, but they manage the corporation indirectly through a board of and. Statement of information is due and costs $ 25 bind the corporation to contracts... Financial buzz word used to describe economic policies Which some view to be overly leftist that an... ) can be excited for other people? S triumphs stock 4 corporation. Sale of stock 4 the filing fee for Articles of Incorporation with the state What are the 4 attributes corporation... Some kind some view to be overly leftist deciding whether current directors should be nominated for reelection capital acquisition Held! Characteristics of a corporate structure: the stockholders of a corporation, they... Grand total for forming a California corporation is $ 125 ) At-will dissolved by any withdrawal. Customer will earn $ 100,000 during their middle years an S corporation from...
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