You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Living, $475.75; fixed,$679.65; share of annual, $291.17. Ownership evidence by shares of stock 3. refusal to buy a company's services or product. C) Enforcing a claim Amazon was founded in 1994 and is a world leader in e-commerce. G) Board members believe the institution exists for personal benefit and engage in self-serving transactions at the institutions expense Some of the main characteristics of small businesses are: They can be further categorized. 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)? (Assume all sales were on account.) Competitive: I thrive under pressure. Identify the two types of relevant costs. Separate Legal Existence Assume, based on your response in the previous section, that the customer will earn$100,000 during their middle years. Google. i) Corporation can act humanitarianly if that humanitarian effect is a secondary effect or purpose that comes after the primary purpose of creating a profit or long-term benefits of the company Long before the term "influencer" was coined, young people played that social role by creating and interpreting trends. Retrieve the 2016 Under Armour financial statements at www.sec.gov by clicking on Filings and then searching for Under Armour under Company Filings. A corporation is treated as a person with most of the rights and obligations of a real person. $$ What is an example of a business that would have a high inventory turnover? ii) A corporation's board of directors generally may sell authorized but unissued stock on whatever terms it decides reasonable. J.P. Morgan Chase. Since the corporation is a separate legal entity, the owners do not have the power to bind the corporation to business contracts. A person with ?good character? 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. 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. i) If there is an emergency, the notice requirement can be waived, A) Directors A company with fewer than 100 employees is generally considered a small-sized business, while one with between 100 and 1,500 employees is a medium-sized business. (2) Such control has been used to commit a fraud or other wrong; and 10) The board and board committees should conduct a rigorous self-assessment at least every two years, Key Responsibilities of Effective Board Members, A) Providing the institution with effective, competent management What theory is involved in the modern corporation? iii) General partners manage and have personal liability An LLCs life is terminated at any members choice or death Caleb Brown is the sole owner of a bicycle sales and repair shop from several years. The liability of stockholders is limited to the amount each has invested in the corporation. 3) Accounts Receivable = amounts not yet collected from customers to whom goods have been shipped or services delivered 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. C) Board members are accustomed to receiving information packets at the beginning of a meeting, rather than in advance Ownership. "A business that is able to nurture the same . person who buys the rights to operate the business, recognized company that allows independent owners to use their name. a) Internal Auditor b) Outside Auditors look at how things are recorded and for irregularities Usually represents a very large portion of the assets of firms engaged in financing businesses c) If you or a family member are affiliation in any way with some outside auditor of the company, i) *Audit Committee* 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? iii) At-will or definite period 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" So, the minimum grand total for forming a California corporation is $125. 8) The board, through its audit committee, should verify the institution's financial management strength and effectiveness through an annual external audit c) Must be comprised entirely of independent directors (adsbygoogle = window.adsbygoogle || []).push({}); Copyright 2023 Find what come to your mind. 6) Prepaid Expenses = payments a firm has made in advance for services it has not yet received Legal status 5. Be sure to retrieve the 2016 financial statements, not another year. 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. This gives a corporation a larger pool of resources because it is not limited to the resources of a small number of individuals. Assertive (takes the initiative in a good way!) 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: Find the total monthly expenses. Domino?s Pizza. 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 A) Corporations raise money by issuing securities to their investors. A corporation is a legal entity, meaning it is a separate entity from its owners who are called stockholders. Self-Managing It's hard to manage others effectively if you. ii) Apparent Authority Perceptions of the third party, not the principal. (8) Whether the corporations are treated as independent profit centers (big one); Professional management b. By setting up a PAC only those who support the politician can give money Advantage of Corporations. 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" The corporation?s resources are limited to what the stockholders can contribute. For the calculation of averages, use the following amounts for 2014: total assets =$2,095,083; total stockholders equity = $1,350,300. ii) Second "Accounting stage" What are 2 characteristics of a corporation? Since a corporation is a separate legal entity, creditors have recourse only to corporate assets to satisfy their claims. A number of characteristics distinguish a corporation from a sole proprietor or partnership. 3. a) Some companies have established this committee in recent years Public companies are governed under rules of the Securities and Exchange Commission ( " the SEC " ). The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. These characteristics are noted below. A) The duty to provide the faith and confidence and the duty of care, loyalty and obedience 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. 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. Limited to their investment. Removing #book# a) Assets are values at what is called their "historical cost," which is what the company paid for them, not what they are currently worth, Accounting & Financial Reporting - Current assets , Include cash and other assets which in the normal course of business will be converted into cash in the reasonably near future Who is the most powerful person in a corporation? Complimenting is not only a good thing to do, but a sign that you can be excited for other people?s triumphs. 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 a) Company, usually with the assistance of independent public accountants, verifies the information it has recorded and the manner in which it has presented the financial accounting, Accounting & Financial Reporting - Bookkeeping, i) Every transaction which a company is involved is included in the company's leger These characteristics are as follows: Capital acquisition. 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. 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 Ownership of a corporation is held in shares of capital stock, which are transferable units. Corporation acts under its own name rather than in the name of its stockholders. The most significant of these are: Separate Legal Existence Continuous Life Ability to Acquire Capital Transferability Limited Liability Government Regulations Taxation Governance and Management Let's look at each of these in turn. What does a universal WiFi Internet adapter do? 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. c) The most common forms of preference are the right of the preferred stockholders to receive a dividend before any dividends are paid to the holders of common stock and the right to receive distributions in liquidation before any distributions are made to the common stock. Advantage of Corporations. Dividends. How to Market Your Business with Webinars? 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. 1) Dilution Reduction in the economic return of your shares and the voting power and control you can exert by owning those shares, The most basic of all corporate securities You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Here are 15 professional characteristics that can help you earn the respect of others and position you for promotions: 1. Which is a disadvantage of a corporate structure? Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. 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. b) Responsible for nominating candidates for the board of directors and deciding whether current directors should be nominated for reelection 4) Vote on major transactions a) The corporation pays taxes, not individuals Ability to raise large amounts of capital High ability 5. ii) No one factor is decisive a) Unless the P can rebut the presumption, a court will evaluate the substantive merits of the action - d.$90 per unit. Transcribed image text: All of the following are . A corporation is not allowed to hold public office or vote, but it does pay income taxes. Exxon Mobil. iii) *Nominating Committee* Type of Tax Description Advantages Disadvantages Direct Taxes Personal income tax (time and money).Tax levied on incomes/wages/earnings Progressive - use a marginal tax rate that increases as the amount of taxable income increases, thus effective in income distribution. Which is a disadvantage of a corporate structure? Owners elect a board of directors to set corporate policies and select officials to manage the corporation 6. Watch on Forbes: 1. Example #1 Amazon. a. This statement is true. 1) Dividends Direct management by the shareholders (owners) c. Its inability to own property d. Shareholders who have limited liability 3. Separate entity. What are some of the characteristics of a corporation? Certain industries, such as banks, financial institutions, and gaming, are also subject to regulations from other governmental agencies. Clothing should always be clean and ironed properly. Example #6 ? Corporations must pay federal and state income taxes as a separate legal entity. When someone is generous, kind, energetic, or optimistic they exude energy that attracts others. Government regualtions. 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 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 What are 2 characteristics of a corporation? Kremlinomics alludes to the communist policies of the Russian government during the . Owner liability 8. Example #3 ? They are honest in relationships. The loan and the interest are repayable in full in November. (6) The degree of discretion shown by the allegedly dominant corporation; The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. Publicly held companies with stock traded on exchanges are required to file their financial statements and additional informative disclosures with the Securities and Exchange Commission. c. The companys rates of return on sales (ROS), average total assets (ROA), and average stockholders equity (ROE), using DuPont analysis. See Answer To be recognized as a corporation, a business must file an application that includes the corporation's articles of incorporation (charter) with the State, pay an incorporation fee, and be approved by the State. Corporations have a number of distinguishing characteristics. Organization costs, including legal fees, underwriters' fees for stock and bond issues, and incorporation fees, are recorded as an intangible asset and amortized over a period of time not to exceed 40 years. 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 Humans Resources. Amazon. Positive character traits can be developed in ourselves. i) The relationship among what are described as directors, (the officers whom have the day-to-day operations), the shareholders and employeeswhat their rights are with one another 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. Descriptions High because buying stock is attractive Characteristic 1. b. 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. Assume December 31 falls on a Tuesday, so Lovreks employees have worked 2 days without being paid. v) Personal liability Less Is More. 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 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 . 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. They remember their manners. 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