B) With contract creditors, plaintiffs will have had every opportunity to get personal guarantees in the contracts, or to protect themselves in the event that funds were not available; whereas, with a tort, it kind of just happens and you can't prepare for it If you already know that you need a logo for your business, you can use our logo maker to help you create a strong one. What are 2 characteristics of a corporation? Disadvantage of Corporations. 4) Vote on major transactions Here are certain characteristics that are not representative of corporations: The stockholders of a corporation have unlimited liability. Its charter may limit the corporation's life although the corporation may continue if the charter is extended. A corporation is a legal entity, meaning it is a separate entity from its owners who are called stockholders. What are the characteristics of a good person? Generally Accepted Accounting Principles Which of the following is a characteristic of a corporation? 9) Management and the board of directors should have formal succession plans in place that are reviewed annually Dividends. b. setup time iv) Limited partners are passive investors and have no personal liability Mutual agency 6. Bridgewater Corp. offered holders of its 1,000 convertible bonds a premium of $160 per bond to induce conversion into shares of its common stock. These characteristics are as follows: Capital acquisition. 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. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. 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. 3) Did not have a rational business purpose (i.e., constituted a waste of corporate assets); However, this special order would not have a sales commission. A corporation is a legal entity, meaning it is a separate entity from its owners who are called stockholders. ii) Debt Securities generally are the least risky and have the lowest expected return. No managerial skills needed from stockholders because decisions are made by the Board of Directors. What is the difference between Hardie board and Hardie plank? Some persons may be employed to help the owner but ultimate control lies with him. The communication of thoughts, information, perceptions, and opinions among individuals is a continuous cycle in professional, personal, and business settings. Separate legal existence 2. Domino?s Pizza. This statement is true. (2) Such control has been used to commit a fraud or other wrong; and D: Which of the following is true with regard to the characteristics of corpora- tions? Limited Liability of Stockholders. 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. A) The corporation is a separate legal person, but can neither sue nor be sued. a) Oversees the way senior executives are paid Determine another student's ideal beliefs and the significance of those beliefs for a spa. Latin for "let the buyer beware"; buyers need to know what they are purchasing, whether it has a warranty, etc. b) Responsible for establishing the terms of any stock options executives may get as compensation Ability to raise large capital amounts 2. 3) Ability to have influence as to who is put on the ballet as a nominee advantages of corporations, disadvantages of corporations, Ability to increase capital by selling stocks, No managerial skills needed from stockholders because decisions are made by the Board of Directors, Financial and Managerial Accounting: Information for Decisions, Barbara Chiappetta, John J. B) Revenues and expenses are recorded on an accrued basis rather than a cash basis Memorable. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. 4) A code of ethics that applies to all officers, board members, and employees should be adopted and monitored for adherence by the board The customer makes $20,000 in labour income when they are young. b) Responsible for nominating candidates for the board of directors and deciding whether current directors should be nominated for reelection Money that can be borrowed as you need it, which must be paid back with interest. a) You have been an employee of the company, or a family member has been an executive of the company an odd degree polynomial function with real coefficients. Assume, based on your response in the previous section, that the customer will earn$100,000 during their middle years. C) Last in, last out Method visualizes inventory as being added to and sold from the top of the stack, Accounting & Financial Reporting - Fixed Assets , Sometimes referred to as long-term assets or as property plant and equipment, are assets a firm uses to conduct its operations Characteristics of corporations Legal entity Rights as person and citizen Creature of state Limited liability of shareholders Unrestricted transferability of corporate shares Perpetual existence Centralized management Corporate taxation Express powers: Additional taxes Corporations must pay federal and state income taxes as a separate legal entity. 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)? 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 B) Instead, they need to set up Political Action Committees (PAC) & raise revenues separately and can support that way The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. ii) Formed by operating agreement and filing articles of organization vi) Majority decision making, i) Partnership w/ general & limited partners Enter a Melbet promo code and get a generous bonus, An Insight into Coupons and a Secret Bonus, Organic Hacks to Tweak Audio Recording for Videos Production, Bring Back Life to Your Graphic Images- Used Best Graphic Design Software, New Google Update and Future of Interstitial Ads. He is not required to consult anybody. 1) Are there members who are interested? There may be thousands, even millions, of stockholders in a public company. i) Factors As a corporation is owned by stockholders and managed by employees, the sale of stock, death of a stockholder, or inability of an employee to function does not impact the continuous life of the corporation. Members of Gen Zloosely, people born from 1995 to 2010are true digital natives: from earliest youth, they have been exposed to the internet, to social networks, and to mobile systems. ii) Second "Accounting stage" Amazon. Which one of the following is not a characteristic of a corporation? 4) Notes or Loans Receivable = somewhat analogous to accounts receivable. d) Disinterested and independent (has two methods of analysis = duty of loyalty 1. Capital acquisition. the making of a program to manage finances through budgeting and investment. 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 Limited to their investment. Retrieve the 2016 Under Armour financial statements at www.sec.gov by clicking on Filings and then searching for Under Armour under Company Filings. 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 Ownership in a corporation is represented by stock certificates, which is why the owners are called stockholders. How to Market Your Business with Webinars? \end{array} Owners elect a board of directors to set corporate policies and select officials to manage the corporation 6. ii) Formed by filing articles of incorporation with the state ii) The idea of the internal affairs doctrine is that we need at least some core that is predictable so we can know if managers need to be elected by a majority or a plurality - McDermott Inc. v. Lewis. $50 per unit from your Reading List will also remove any They compliment others when deserved. 1) Land, equipment, machinery, office equipment 6) The board should adopt appropriate policies and procedures to manage processes, establish guidelines, and determine appropriate risk thresholds for all significant products and services Accounting & Financial Reporting - Bookkeeping works within following three categories a) Internal Auditor first line of defense against financial fraud Select one: a. traits, like being honest, respectful, responsible, caring, fair. 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. 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" A corporation is treated as a person with most of the rights and obligations of a real person. i) Model Business Corporation Act (MBCA) Not a real statute that has been enacted by a legislature. They are polite. jmu women's field hockey roster b) Outside Auditors look at how things are recorded and for irregularities A corporation is subject to numerous state and federal regulations. The business entity carries on business activity on its own behalf. What is an example of a business that would have a high inventory turnover? What are the Characteristics of Corporations? 2) Even if the corporation does well, the holder of the debt security only receives a fixed payment iii) At-will or definite period Profits (Losses) can be shared among members in any proportion the members desire. The par value of corporate shares issued represents a corporation?s legal capital. a) Current liabilities Debt the firm owes that must be paid within one year of the balance sheet date a) Company records in its books information concerning every transaction in which it's involved What are 2 characteristics of a corporation? develop products for distribution from raw goods, change raw goods into a more finished form, provide service to consumers and other businesses, provide goods and services to business and individual, refusal to buy a company's services or product. 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. provide goods and services to business and individual. Microsoft. 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