What will she spend in each stage of her life? iii) *Nominating Committee* A company shareholder is personally liable for the debt of the corporation. Separate taxable entity (leading to double taxation) 7. ii) Income - Dividends = Retained earnings A corporation can sell shares to new investors, and larger entities can issue bonds to obtain a significant amount of debt financing. 3M. Legal status 5. Limited liability. 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. 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. 2) Was not made in good faith; c. Which is characteristic of a limited liability company ( LLC )? a. Produce goods used by other businesses or organizations to make things, type of commercial business that use mostly labor to offer intangible products to satisfy consumer needs. 75,000 & 187,500 & 2.50 \\ 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 treated as a person with most of the rights and obligations of a real person. a market where stocks and bonds are traded. 6) Prepaid Expenses = payments a firm has made in advance for services it has not yet received Public companies are governed under rules of the Securities and Exchange Commission ( " the SEC " ). a) Partnership is not a taxpaying entity. If she does not believe that the agent has the authority, the principal is under a duty to investigate Limited liability 5. \text{Direct materials}&\$56\\ Legal status Separate legal entity 8. B) Working with management to promote ethical, positive corporate culture Dividends. 5) Vote to amend to Articles However, this special order would not have a sales commission. v) Personal liability 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. A) Waste only is "what the corporation has received is so inadequate in value that no person of ordinary, sound business judgment would deem it worth that which the corporation has paid" Save my name, email, and website in this browser for the next time I comment. $$ 1) The corporation (the real party at interest) is a nominal defendant and the plaintiff-shareholder (in reality, her attorney), controls prosecution of the suit Was 2016 stronger or weaker than 2015? Ownership is easily transferred through sale of stock 4. 1? A corporation is a separate legal entity that stockholders own. Google. Previous ii) Formed by partnership agreement 5) Was made by a director or directors who otherwise were not independent 1) Labor laws that govern employees; environmental law; etc. Separation of owners and entity (no mutual agency). These 5 qualities make a logo instantly identifiable, and ensure that when customers look at it, they'll connect with your brand. \text{Selling and administrative expenses (45\\\% variable)}&\underline{26}\\ Example #3 ? c. lead time Brightstone's accounting system indicates that the total cost per tire is as follows: Often secured by property. 2) If yes Are all other directors independent of that interested party? an odd degree polynomial function with real coefficients. 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 (3) The fraud or wrong results in an unjust loss or injury to the P. Piercing the Corporate Veil general overview -- advantages, etc. A corporation is a legal entity, meaning it is a separate entity from its owners who are called stockholders. 5) A well-publicized whistle-blower process should be established so employees, vendors, and customers can anonymously report concerns Money borrowed against a home or land. Separate Legal Existence B) In order for the board to act, it must - d.$90 per unit. Corporate managment. Assume the company does not use reversing entries. - a. They are kind to everyone. A) The duty to provide the faith and confidence and the duty of care, loyalty and obedience Direct management by the shareholders (owners) c. Its inability to own property d. Shareholders who have limited liability 3. 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 Advantage of Corporations. Owners elect a board of directors to set corporate policies and select officials to manage the corporation 6. The LLC can be considered as a partnership or sole proprietorship for income tax purposes. \text{Factory overhead (60\\\% variable)}&25\\ Expert Answer. 1) Labor laws that govern employees; environmental law; etc. Limited Liability of Stockholders. Which is a characteristic of a generally accepted accounting principles? A corporation can obtain capital by selling stock or bonds. B) Special Meetings Can be called pursuant to articles that are set forth in the bylaws, needs to give notice & some general information about what the meeting will be about John David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine, Calculus for Business, Economics, Life Sciences and Social Sciences, Karl E. Byleen, Michael R. Ziegler, Michae Ziegler, Raymond A. Barnett, Elliot Aronson, Robin M. Akert, Samuel R. Sommers, Timothy D. Wilson. traits, like being honest, respectful, responsible, caring, fair. Government regualtions. 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 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 b) Action is brought against the corporation for failure to bring an action in law against some third party, most often an alleged careless or unfaithful manager, who is also a defendant in the suit We use cookies to ensure that we give you the best experience on our website. Mutual agency 6. Professional appearance. 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 Capital acquisition. You can begin building your success by developing these 11 must-have traits of a powerful and successful leader. Cheerful : I develop a positive work environment. Most corporate detectives avoid terms like spying and espionage, preferring the more dignified label "competitive intelligence", but whatever they call it, snooping on business rivals has become an entrenched sub-industry. ii) When looking to who can speak on behalf of the corporation you look to the chain of command, California ApproachPseudo Foreign Affairs (to internal affairs), i) California holds the view that if the most important interest in the company are operated in Californiaif 50 percent of the company is run in the statethen California state law will apply, i) Association of two or more people F) Meetings are characterized by little or no discussion, or board members go out of their way to avoid conflict, resulting in rubber stamping At its most basic level, what is corporations about? The limited liability and ease of transferring ownership rights makes it easier for a corporation to acquire capital by selling stock, and the size of the corporation allows it to issue bonds based on its name. Tip. Prepare a differential analysis dated January 21 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors. So, the minimum grand total for forming a California corporation is $125. 3) Accounts Receivable = amounts not yet collected from customers to whom goods have been shipped or services delivered 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)? joint venture. Personal assets of stockholders are not available to creditors or lenders seeking payment of amounts owed by the corporation. The filing fee for Articles of Incorporation is $100. maintaining employment process training and development staff. iii) General partners manage and have personal liability How does the CPI differ from the Myers-Briggs test? Generally Accepted Accounting Principles Which of the following is a characteristic of a corporation? 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. Next, measure that student's attitude toward the concept you have created in your verbal description. 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. What are 2 characteristics of a corporation? What are the characteristics of a corporation quizlet? 8 Which is a disadvantage of a corporate structure? Par. G) Attending meetings and actively participating in board discussions a) It is an action in equity brought by a shareholder on behalf of the corporation 1) What are the voting rights that s/s are able to exercise? Example #1 Amazon. What does a universal WiFi Internet adapter do? 4) A code of ethics that applies to all officers, board members, and employees should be adopted and monitored for adherence by the board Living, $475.75; fixed,$679.65; share of annual, $291.17. Shareholders who are mutual agents b. ability of profit-making organizations to compete with businesses in other countries effectiveness making the right decisions about what products or services to offer customers and how to produce and deliver them efficiency producing needed goods or services quickly and at a low cost domestic goods products made by firms in the United States Is Mutual Agency a characteristic of a corporation? C) Board members are accustomed to receiving information packets at the beginning of a meeting, rather than in advance Ability to raise large capital amounts 2. 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 In some states, stockholders are called shareholders. d. The company pays cash dividends to shareholders. from your Reading List will also remove any Competitive: I thrive under pressure. Example #7 ? c) Informed and rational basis = duty of care OutputTCMC25,000$100,000$0.5050,000150,0001.0075,000187,5002.50100,000275,5003.00\begin{array}{rrr} They are polite. Owner authority and control One vote per share 2. 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. Double taxation. A closely held business has only a few shareholders. Brightstone presently produces and sells 130,000 tires for the North American market at a price of $175 per tire. An investment expert makes all of the buy and sell decisions, as source of supply, support, or aid. 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. Your success by developing these 11 must-have traits of a corporation is a disadvantage of a?... 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