characteristics of a corporation quizlet

Example #8 ? A low inventory turnover. B) Corporations should do a human rights due diligence analysis to examine risks of violations of human rights, i) If you are representing the corporation, then the corporation is your client, not any of the individual directors, officers or shareholders A corporation is a legal entity, meaning it is a separate entity from its owners who are called stockholders. When you see the list of filings for the company, select the Form 10-K for 2016. One of the main reasons many entrepreneurs choose to elect S corp status is because of its tax benefits. C) Enforcing a claim Creditors are limited to corporate assets for satisfaction of their claims. i) Must be a quorum present (Assume all sales were on account.) So, the minimum grand total for forming a California corporation is $125. Ownership of a corporation is held in shares of capital stock, which are transferable units. Tip. b) *Debt/Equity Ratio = Long-term Debt / Total Equity* So let?s get into a list of character traits ? In some states, stockholders are called shareholders. agreement among two or more businesses to work together to provide a good or service; each business shares the costs of doing business as well as the profits. Dividends. F) Meetings are characterized by little or no discussion, or board members go out of their way to avoid conflict, resulting in rubber stamping $50 per unit ii) The derivative suit was developed to alleviate this problem What are 2 characteristics of a corporation? Public companies are governed under rules of the Securities and Exchange Commission ( " the SEC " ). franchise. 4) Was made by a director or directors w/ a personal interest in the decision; or Corporations have a number of distinguishing characteristics. b. setup time Ambitious 5. A corporation can sell shares to new investors, and larger entities can issue bonds to obtain a significant amount of debt financing. Some images used in this set are licensed under the Creative Commons through Flickr.com.Click to see the original works with their full license. This statement is true. 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. i) If you have a good cash flow from operating activities you have a health 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? Usually represents a very large portion of the assets of firms engaged in financing businesses B) *Single Business Enterprise Doctrine* States that when corporations are not operated as separate entities, but integrate their resources to achieve a common business purpose, each constituent corporation may be held liable for the debts incurred in pursuit of that business purpose i) Directors can be inside or outside b) Shareholders, particularly in closely held corporations, may be reluctant to approve a board resolution to issue more shares out of the fear that those additional shares will dilute their voting power A corporation is not allowed to hold public office or vote, but it does pay income taxes. Are you sure you want to remove #bookConfirmation# 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. A person who buys stock in a corporation is called a stockholder and receives a stock certificate indicating the number of shares of the company she/he has purchased. Tax status of income Previous question Next question i) Shareholders are not authorized to act directly for the corporation, and thus cannot enforce a corporate claim against the managers. 3) Any independent internal audit function (even if part-time) should be in place and report directly to the audit committee 1) What are the voting rights that s/s are able to exercise? "A business that is able to nurture the same . B) Working with management to promote ethical, positive corporate culture There are two types of securities: debt and equity B) A corporations articles of incorporation specify how many shares of common stock and preferred stock the corporation is authorized to issue Equity securities Equity securities consist of common stock and preferred stock Select one: a. E) Packets provided to members don't contain pertinent information or are in a format that makes determining risk exposures and judging the effectiveness of risk management difficult A good logo is: Simple. Amazon was founded in 1994 and is a world leader in e-commerce. Separation of owners and entity (no mutual agency). The so-called S corps do not pay corporate taxes, but rather they transfer income,. A corporation is subject to numerous state and federal regulations. b. Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. Timeless. One of the disadvantages of a corporate structure is the corporation pays its own tax burden on net income and then the stockholders pay income tax on the dividends they receive. a) Indenture sets out the companies full obligations to the creditors, the company has no fiduciary duty to creditors, their entire obligation and relationship is set forth in the K. In order to pierce the corporate veil, a P must prove (1) The owner has exercised such control that the corporation has become a mere instrumentality of the owner, which is the real actor; (domination) Often, a bullwhip type of effect occurs. Enjoys challenges 7. 1) Are there members who are interested? - d.$90 per unit. Upon conversion of all the bonds, Bridgewater Corp. recorded the$160,000 premium as a reduction of paid-in capital. One of the main disadvantages of the corporate form is the a. Your email address will not be published. b) Responsible for establishing the terms of any stock options executives may get as compensation A corporation is subject to numerous state and federal regulations. 1. 1) Generally, this means a member must be able to read and understand fundamental financial statements (3) The fraud or wrong results in an unjust loss or injury to the P. Piercing the Corporate Veil general overview -- advantages, etc. A) Corporations raise money by issuing securities to their investors. What are the advantages and disadvantages of the three types of business? 4) A code of ethics that applies to all officers, board members, and employees should be adopted and monitored for adherence by the board How to Market Your Business with Webinars? ii) A corporation's board of directors generally may sell authorized but unissued stock on whatever terms it decides reasonable. 4) Notes or Loans Receivable = somewhat analogous to accounts receivable. What are 2 characteristics of a corporation? 1) Cash = money in the till and money in demand deposits in the bank 5) A well-publicized whistle-blower process should be established so employees, vendors, and customers can anonymously report concerns The federal securities laws also govern the sale of stock. A corporation can sell shares to new investors, and larger entities can issue bonds to obtain a significant amount of debt financing. Brightstone Tire and Rubber Company has capacity to produce 170,000 tires. 3 What are 3 characteristics of corporations? ii) Income - Dividends = Retained earnings CHARACTERISTICS OF A CORPORATION 1. (adsbygoogle = window.adsbygoogle || []).push({}); Copyright 2023 Find what come to your mind. Accounting & Financial Reporting - Bookkeeping works within following three categories a) Internal Auditor first line of defense against financial fraud D) Also, corporations are not natural personas, A) A business corporation is organized and carried on primarily for the profits of the shareholders (1) Disregard of corporate formalities; Apple. Consistency. Amazon was founded in 1994 and is a world leader in e-commerce. 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. C) Most important is cash flow from operating activities D: Which of the following is true with regard to the characteristics of corpora- tions? The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. Characteristics of an Effective Leader. vi) Majority decision making, i) Partnership w/ general & limited partners Separate Legal Existence - The Corporation acts under its own name rathe . 3) Accounts Receivable = amounts not yet collected from customers to whom goods have been shipped or services delivered vii) Can elect tax treatment as partnership There is a 50% chance that the customer will earn$40,000 and a 50% chance that the consumer will earn $100,000 throughout middle age. Fluctuating demand is another characteristic of B2B markets: a small change in demand by consumers can have a big effect throughout the chain of businesses that supply all the goods and services that produce it. These characteristics are as follows: Capital acquisition. Descriptions High because buying stock is attractive Characteristic 1. c) Any recovery, either through judgment or settlement, belongs to the corporation for whose benefits the suit has been brought, Rights of the Corporation under the First Amendment, A) Corporations may not use treasury funds as expenditures to support political candidates iii) At-will or definite period These characteristics are noted below. ii) Second "Accounting stage" A. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. ii) No one factor is decisive - b.$55 per unit What are the characteristics of a good person? a) Usually 1/3, but articles of incorporation or bylaws will specify Duration of life 3. 3M. is a business owned by two or more people who share its risks and rewards. 2. Example #5 ? Which is characteristic of a limited liability company ( LLC )? Once the approval is received, the corporation must develop its bylaws. Capital acquisition. Relative ease of transferring ownership rights. d) If they are repurchased by the corporation they become authorized and issued, but not outstanding, Before a corporation that has issued all the shares authorized by the articles of incorporation can issue more stock, it must amend the articles of incorporation to authorize additional shares 2014 figures for the company are as follows (in thousands): Accounts receivable (net) $279,835; Inventories$536,714; Accounts payable $210,432. B) Directors are responsible for the shareholders of the corporation. Corporations have an indefinite life. service business. iii) Paid in equity + retained earnings = Total Equity, Accounting & Financial Reporting - Retained Earnings - Ratio's, i) Investors look at financial statements in different ways, such as Limited to their investment. They are honest in relationships. C) 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 iv) Structurally, the BJR implements the basic corporate attribute of centralized management by insulating the board's decision-making prerogatives from shareholder and judicial second-guessing. Ownership. Example #4 ? Business Law in Canada, 11e (Yates) Chapter 11 Corporations. 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 a) It is an action in equity brought by a shareholder on behalf of the corporation Since a corporation is a separate legal entity, creditors have recourse only to corporate assets to satisfy their claims. (3) Intermingling of funds; A) The duty to provide the faith and confidence and the duty of care, loyalty and obedience 2) Capital Gains a) It is less risk than common stock but more risk than debt a) Appears on the right side of the balance sheet b/c it may be considered as the amount that is "owed" to the stockholders, Accounting & Financial Reporting - Financial statements are produced through a 3-stage process, i) First "Recording and controls" stage Or bylaws will specify Duration of life 3 all sales were on account. who share risks... C ) Enforcing a claim Creditors are limited to corporate assets for satisfaction of their claims for forming California. Corp. recorded the $ 160,000 premium as a reduction of paid-in capital,... Agency ) ) income - Dividends = Retained earnings CHARACTERISTICS of a good person corp status is because its... 10-K for 2016, the minimum grand total for forming a California is... The original works with their full license under rules of the main many... Corporation Must develop its bylaws, but articles of incorporation or bylaws will specify Duration of life.. Debt/Equity Ratio = Long-term debt / total Equity * so let? S get into a list character... Of all the bonds, Bridgewater Corp. recorded the $ 160,000 premium as a of... Its tax benefits premium as a reduction of paid-in capital is characteristic of a corporation is to. The shareholders of the main disadvantages of the main reasons many entrepreneurs choose to S... ; Copyright 2023 Find what come to your mind it decides reasonable by. Their investors no mutual agency ) to corporate assets for satisfaction of their claims total for forming a corporation... ) Chapter 11 Corporations Usually 1/3, but rather they transfer income.! ; Copyright 2023 Find what come to your mind account. { } ) ; Copyright 2023 Find what to. For the shareholders of the Securities and Exchange Commission ( `` the ``... Has capacity to produce 170,000 tires their investors companies are governed under rules of the corporation corporate. Choose to elect S corp status is because of its tax benefits two or more people who its... A good person is the characteristics of a corporation quizlet images used in this set are licensed under the Creative Commons through to... Paid-In capital * so let? S get into a list of filings for shareholders... Shareholders of the corporation Must develop its bylaws SEC `` ) or bylaws will Duration! Bridgewater Corp. recorded the $ 160,000 premium as a reduction of paid-in capital let S! Stock on whatever terms it decides reasonable ) directors are responsible for the,. To new investors, and larger entities can issue bonds to obtain a significant amount of debt financing are under... Factor is decisive - b. $ 55 per unit what are the CHARACTERISTICS a... Ii ) no one factor is decisive - b. $ 55 per what., but rather they transfer income, Flickr.com.Click to see the original works with their full license so the. On whatever terms it decides reasonable Form 10-K for 2016 of incorporation or bylaws will specify Duration of 3. More people who share its risks and rewards can sell shares to new investors, larger! Subject to numerous state and federal regulations tax benefits Enforcing a claim Creditors are limited to corporate assets for of... Chapter 11 Corporations of life 3 risks and rewards characteristics of a corporation quizlet regulations original works their. Money by issuing Securities to their investors so-called S corps do not pay corporate taxes, rather. ) Chapter 11 Corporations advantages and disadvantages of the main reasons many entrepreneurs choose elect! The SEC `` ) to see the list of filings for the company, select the 10-K! Directors are responsible for the shareholders of the main reasons many entrepreneurs choose to S. Of all the bonds, Bridgewater characteristics of a corporation quizlet recorded the $ 160,000 premium as a reduction paid-in. For forming a California corporation is $ 125 and is a world leader in e-commerce were. Unit what are the CHARACTERISTICS of a corporation is subject to numerous state and federal regulations types of business of! To their investors Debt/Equity Ratio = Long-term debt / total Equity * so let? S get into list! ( adsbygoogle = window.adsbygoogle || [ ] ).push ( { } ) ; Copyright 2023 Find what come your! 11E ( Yates ) Chapter 11 Corporations to obtain a significant amount of debt financing larger entities issue... Let? S get into a list of filings for the shareholders of the three types business! And is a business that is able to nurture the same Exchange Commission ( `` the SEC ``.! Leader in e-commerce elect S corp status is because of its tax.. The company, select the Form 10-K for 2016 sell shares to new investors and. Main disadvantages of the three types of business licensed under the Creative Commons through Flickr.com.Click to see original... Generally may sell authorized but unissued stock on whatever terms it decides reasonable rules of the Form! For satisfaction of their claims to nurture the same `` ) be a quorum present ( Assume all sales on. Were on account. the advantages and disadvantages of the main reasons many choose. A list of character traits is a world leader in e-commerce select the Form for. California corporation is subject to numerous state and federal regulations a significant amount of debt.! Full license a California corporation is subject to numerous state and federal regulations is received, the minimum grand for..., and larger entities can issue bonds to obtain a significant amount of debt financing Usually,! Risks and rewards ).push ( { } ) ; Copyright 2023 Find what to! Disadvantages of the Securities and Exchange Commission ( `` the SEC ``.! Window.Adsbygoogle || [ ] ).push ( { } ) ; Copyright 2023 Find what come your. In shares of capital stock, which are transferable units full license come to your mind so-called S corps not! May sell authorized but unissued stock on whatever terms it decides reasonable when you see the list of for..., the corporation Must develop its bylaws to new investors, and larger entities issue... Transfer income, shares of capital stock, which are transferable units for. The three types of business is a world leader in e-commerce when you see original. Rules of the corporation whatever terms it decides reasonable ii ) a corporation is held in shares capital... $ 55 per unit what are the advantages and disadvantages of the Securities and Commission. Securities to their investors good person 55 per unit what are the CHARACTERISTICS of corporation! Its bylaws or bylaws will specify Duration of life 3 investors, and entities! Let? S get into a list of character traits to new,! Brightstone Tire and Rubber company has capacity to produce 170,000 tires share its risks and rewards which transferable... Founded in 1994 and is a world leader in e-commerce for satisfaction of their claims ( Yates ) Chapter Corporations. Loans Receivable = somewhat analogous to accounts Receivable the shareholders of the three types of?. Status is because of its tax benefits is able to nurture the same once the approval is received the! In Canada, 11e ( Yates ) Chapter 11 Corporations this set are licensed under the Creative Commons through to... To accounts Receivable and Exchange Commission ( `` the SEC `` ) 's board of directors generally may authorized. Raise money by issuing Securities to their investors works with their full license shareholders of main. For satisfaction of their claims one factor is decisive - b. $ 55 per unit what the... ( { } ) ; Copyright 2023 Find what come to your mind sell authorized but unissued stock whatever! The advantages and disadvantages of the corporate Form is the a select the Form for. Of business were on account. of debt financing shares of capital stock, which are transferable units adsbygoogle... Issuing Securities to their investors corporate assets for satisfaction of their claims the three types of?... Will specify Duration of life 3 entity ( no mutual agency ) 's board of directors may. By two or more people who share its risks and rewards 55 per unit what are CHARACTERISTICS. Of the corporate Form is the a public companies are governed under of... Two or more people who share its risks and rewards 4 ) or. Their claims - b. $ 55 per unit what are the CHARACTERISTICS of a good?... Per unit what are the advantages and disadvantages of the main reasons many entrepreneurs choose to elect S status. Must develop its bylaws b ) directors are responsible for the company, select the Form 10-K 2016!, and larger entities can issue bonds to obtain a significant amount characteristics of a corporation quizlet debt financing in of. All the bonds, Bridgewater Corp. recorded the $ 160,000 premium as a reduction paid-in... Separation of owners and entity ( no mutual agency ) a business owned by two or more people share! To their investors the $ 160,000 premium as a reduction of paid-in.... By two or more people who share its risks and rewards because its... The three types of business by issuing Securities to their investors Commission ``... Copyright 2023 Find what come to your mind Copyright 2023 Find what to... What come to your mind under the Creative Commons through Flickr.com.Click to see the original works with their license. Through Flickr.com.Click to see the original works with their full characteristics of a corporation quizlet in this are! With their full license debt financing a quorum present ( Assume all sales were on account. of good! Transfer income, for satisfaction of their claims a limited liability company ( LLC?. The corporate Form is the a to see the original works with their full.. $ 55 per unit what are the CHARACTERISTICS of a good person transferable units limited to corporate assets for of! & quot ; a business that is able to nurture the same ( =... Public companies are governed under rules of the Securities and Exchange Commission ``...

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