characteristics of a corporation quizlet

i) Shareholders are not authorized to act directly for the corporation, and thus cannot enforce a corporate claim against the managers. a) Company records in its books information concerning every transaction in which it's involved Is Ashford nationally or regionally accredited? The filing fee for Articles of Incorporation is $100. B) Instead, they need to set up Political Action Committees (PAC) & raise revenues separately and can support that way One of the main reasons many entrepreneurs choose to elect S corp status is because of its tax benefits. iv) Limited partners are passive investors and have no personal liability Determine another student's ideal beliefs and the significance of those beliefs for a spa. Tax status of income Previous question Next question They can exist until the business decides to terminate. What are 2 characteristics of a corporation? 2 Which one of the following is not a characteristic of a corporation? Who is the most powerful person in a corporation? Ownership is easily transferred through sale of stock 4. A corporation is a legal entity that is separate and distinct from its owners. b. 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 Additional taxes Corporations must pay federal and state income taxes as a separate legal entity. Brightstone Tire and Rubber Company has capacity to produce 170,000 tires. 15 Simple Traits Of A Truly Good Person An LLC?s life is terminated at any member?s choice or death Caleb Brown is the sole owner of a bicycle sales and repair shop from several years. 3) If the corporation becomes insolvent, and its assets must be liquidated, debt securities will have priority over equity securities Upon conversion of all the bonds, Bridgewater Corp. recorded the$160,000 premium as a reduction of paid-in capital. Partnership income and expenses are said to "flow/pass through" to the partners in proportion to their ownership interests. One that can be called on when needed, the next best choice you could have taken (Because there are never enough resources to produce all the goods and services people want there must be trade-offs. Owners elect a board of directors to set corporate policies and select officials to manage the corporation 6. Requirements Corporation acts under its own name rather than in the name of its stockholders. B) Business Judgment Rule 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. 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. Calculate ratios for 2015 and 2016 to determine the following for Under Armour: What are the 4 attributes of corporation? Google. iii) Inherent Authority Infers from the position holds that the agent has authority 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. and any corresponding bookmarks? How much does it cost to start a California corporation? c. C) Most important is cash flow from operating activities (6) The degree of discretion shown by the allegedly dominant corporation; \end{array} Professionals should always strive for a professional appearance, including appropriate attire and proper hygiene and grooming. Double taxation of dividends c. Charter d. Transferability of ownership Readily transferred 4. Example #4 ? C) Board members are accustomed to receiving information packets at the beginning of a meeting, rather than in advance Example #1 Amazon. c) Audit Board Committee. There are two types of securities: debt and equity, Equity securities consist of common stock and preferred stock, 1) Common stock assumes the greatest risk of the success or failure of the corporate and has the greatest expected return. Stock of a privately held company is not traded on an exchange and there are usually only a small number of stockholders. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $7.50 per tire. 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. 1) Cash = money in the till and money in demand deposits in the bank Within 90 days of filing, the initial statement of information is due and costs $25. vi) No shareholder liability (7) Whether the dealing between the entities are at arms length; Advantage of Corporations. 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. Professional appearance. Owner authority and control 7. Long before the term "influencer" was coined, young people played that social role by creating and interpreting trends. Continuous Life. \text{Factory overhead (60\\\% variable)}&25\\ So let?s get into a list of character traits ? Find the total monthly expenses. " [Leadership] is all about influencing people," said Kirstin Lynde, founder of leadership development firm Catalyze Associates, in a Facebook Live interview. b) Until shares are first sold to stockholders they are authorized, but unissued D: Which of the following is true with regard to the characteristics of corpora- tions? 2022-11-23. b) Be composed solely of independent directors The companys ability to pay its current liabilities. 50,000 & 150,000 & 1.00 \\ ii) Debt Securities generally are the least risky and have the lowest expected return. Advantage of Corporations. Assume, based on your response in the previous section, that the customer will earn$100,000 during their middle years. 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. It is a team of people, including suppliers of money and labor, who work together to earn a return on their investment. B) The typical test of unfairness is that the entity has been undercapitalized, where a corporation will be using the corporate form only to avoid liability caveat venditor. $50 per unit Some refer to it as a ?legal person.? The following independent situations require professional judgment for determining when to recognize revenue from the transactions. Owner liability Limited 7. b) Limited partners have no voice in the active management of the partnership - c. $70 per unit jmu women's field hockey roster v) Personal liability 4 What are 2 characteristics of a corporation? Comment on Bridgewater's treatment of the $160,000 "sweetener. c) When sold, they are authorized and issued or authorized and outstanding They call their parents regularly. 1) Land, equipment, machinery, office equipment What are the characteristics of a good person? Often, a bullwhip type of effect occurs. iv) *Governance Committee* b) You or a family member received more than $120,000 in direct compensation in any twelve month period over the past three years Government regualtions. Can adapt to changes Industrial businesses A corporation is treated as a "person" with most of the rights and obligations of a real person. 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. iv) Board of directors manage What are 2 characteristics of a corporation? Kremlinomics: A financial buzz word used to describe economic policies which some view to be overly leftist. b. setup time Published on 22 Oct 2018. Are you sure you want to remove #bookConfirmation# What are the characteristics of a corporation quizlet? What are the 4 attributes of corporation? a) The ratification only applies to that specific transaction, does not create future authority, 1) The majority of directors should be independent of the company and its management 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. 1) What are the voting rights that s/s are able to exercise? Memorable. "A business that is able to nurture the same . traits. Enjoys challenges 7. i) Factors Government regulation 4. 9) Management and the board of directors should have formal succession plans in place that are reviewed annually $$ What are the characteristics of a corporation quizlet? Assume that the real interest rate, predicted inflation, and inflation are all equal to zero. Professional management b. A corporation can sell shares to new investors, and larger entities can issue bonds to obtain a significant amount of debt financing. Domino?s Pizza. iii) Perpetual life The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. A) This limited liability means that a corporation's creditors can look only to the corporation's assets for payment for their claims --B and C only --A, B, and C This problem has been solved! The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. 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." Is Mutual Agency a characteristic of a corporation? 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. 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 Which is characteristic of a limited liability company ( LLC )? ii) Formed by operating agreement and filing articles of organization 2. D) Meeting materials are sent in advance, but board members do little or no preparation You can begin building your success by developing these 11 must-have traits of a powerful and successful leader. How do I look up my California corporation number? What are some of the characteristics of a corporation? A number of characteristics distinguish a corporation from a sole proprietor or partnership. 1) A corporation is an organizational entity that is constituted by a group of people who have pooled their resources to create a singular entity with the intention of making a profit. 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 a) Must be comprised entirely of independent directors 1) Was not informed; a) Oversees the way senior executives are paid service business. Corporations have certain characteristics that are unique to this form of organization. \begin{array}{lr} Separate legal existence 2. 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. traits, like being honest, respectful, responsible, caring, fair. 1) Labor laws that govern employees; environmental law; etc. Stockholders have the right to: vote for the members of the Board of Directors and any other items requiring stockholders action; receive dividends when authorized by the Board of Directors; have first right of refusal when additional shares are issued, thereby allowing the stockholder to maintain the same ownership percentage of the company before and after the new shares are issued (called a preemptive right); and share in assets up to their investment, if the company is liquidated. iv) Managers = Agent, AgencyAction Binding the Corporation Types of Authority, i) Actual Authority Principal specifies expressly what the agent is authorized to do, through words or conduct Separate Legal Existence. Direct management by the shareholders (owners) c. Its inability to own property d. Shareholders who have limited liability 3. A good logo is: Simple. What are 3 characteristics of corporations? A corporation is a separate legal entity that stockholders own. A truly good person will compliment when deserved and offer constructive criticism when warranted. 5 What are the 4 attributes of corporation? Which of the following is true with regard to the characteristics of corporations? 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 H) Conducting periodic evaluations of individual member and overall board performance 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 a) *Current ratio = Current Assets / Current Liabilities* 1) Labor laws that govern employees; environmental law; etc. 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. 1) The holder of a debt security typically expects to receive only fixed payments of interest over time and the return of the principal on the maturity date of the debt. 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 Now a new generation of influencers has come on the scene. Less is more, fewer is better, and simple rules are the common mantra here. Some of the pros and cons of forming an LLC can be summarized as follows: LLC Pros : Members have limited liability. Investors in a corporation need not actively manage the business, as most corporations hire professional managers to operate the business. v) Common shareholders elect board and vote on major matters They are kind to everyone. Good people understand that others need praise. 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. Government regulation 4. --managed by a board of directors. C) Shareholders are liable for the debts and other obligations of the . Was 2016 stronger or weaker than 2015? 2) Board members should be recruited for their relevant business, industry or financial expertise B) Working with management to promote ethical, positive corporate culture Corporations are distinguished by the subchapter in chapter 1 of the IRS code that governs their tax structure. Be sure to retrieve the 2016 financial statements, not another year. Mutual agency 6. So, the minimum grand total for forming a California corporation is $125. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Separate entity. \end{array} a) Board of directors must recommend the amendment, which must then be approved by the holders of at least a majority of its outstanding stock v) Dissolved by withdrawal of a general partner, i) Legal entity separate from shareholders One of the main disadvantages of the corporate form is the a. b. c. inability to raise large amounts of capital double taxation . Corporations are created under state or federal laws and have many of the same legal rights as a person . One way to view a business entity is as a separate person. All corporations are owned by groups of investors. By contrast, any investor with the necessary funds can buy stock in a publicly held firm . Stockholders legally own the corporation, but they manage the corporation indirectly through a board of directors they elect. Duration of life 3. a) Current liabilities Debt the firm owes that must be paid within one year of the balance sheet date Flexibility of transferable ownership. He is not required to consult anybody. They think of others. 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. 8 Which is a disadvantage of a corporate structure? Lovrek Company pays salaries of $12,000 every Monday for the preceding 5-day week (Monday through Friday). 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 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. b) Anytime you're dealing w/ a wholly owned subsidiary, it's a good idea for the other company to do its due diligence and inquire whether the subsidiary is authorized to act in the way that it is acting w/out approval of its parent company, AgencyAction Binding the Corporation Types of Authority Inherent Authority , Inherent Authority Infers from the position holds that the agent has authority Which is characteristic of a limited liability company ( LLC )? ii) *Compensation Committee* iv) Default: Member-managed A) The corporation is a separate legal person, but can neither sue nor be sued. Transcribed image text: All of the following are . Versatile. caveat emptor. Apple. B) Represents the difference/surplus between revenues and cost According to Lance Wilkins, founder of Call Outdoors, passionate leaders are the backbone of thriving businesses. 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? The liability of stockholders is limited to the amount each has invested in the corporation. A corporation is treated as a person with most of the rights and obligations of a real person. iii) Third "Audit stage" is a legal agreement to use the name and sell the products of a parent company in a designated geographic area. is a business owned by two or more people who share its risks and rewards. What is a relevant cost? 5) A well-publicized whistle-blower process should be established so employees, vendors, and customers can anonymously report concerns vii) Majority vote by directors and shareholders, Characteristics of a Limited Liability Company, i) Legal entity distinct from members Which is a disadvantage of a corporate structure? i) Revenue - Cost = Income Privately held companies may have some restrictions on the transfer of stock. b. Microsoft. Terms in this set (8) (Hint: The consumer will attempt to maintain constant consumption for her final two life periods as long as she can consume at least $20,000 in each period after she reaches middle age.). Expert Answer. Identify when revenue should be recognized in the given situation. maintaining employment process training and development staff. 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? How much does it cost to start a California corporation? The board, in turn, formulates operating policies and also selects officers to execute policy and to perform daily management functions. Refer to the information presented in the exercise related to Donovan Company. Separation of owners and entity (no mutual agency). 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)? B) Directors are responsible for the shareholders of the corporation. Therefore, corporations may own property, enter into binding contracts, borrow money, sue and be sued, and pay taxes. Top 9 Examples of Most Common Corporations. Competitive: I thrive under pressure. Accounting & Financial Reporting - Fundamental equation of financial accounting Accounting & Financial Reporting - Assets generally, Assets include entries representing the property, both tangible and intangible, owned by the firm. 1 What are the characteristics of a corporation quizlet? There may be thousands, even millions, of stockholders in a public company. 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 2) To get information from management Goal setter 6. (5) Common office space, address, and telephone numbers of corporate entities; They compliment others when deserved. Separation of owners and entity (no mutual agency). One of the main disadvantages of the corporate form is the a. A. Business Law in Canada, 11e (Yates) Chapter 11 Corporations. Clever : I can juggle multiple tasks. 1) CEO and CFO must personally certify that the financial statements are in fact accurate, Accounting & Financial Reporting - Retained Earnings, A) The cumulative amount the company has retained from its products The corporation is considered a separate legal entity, conducting business in its own name. We use cookies to ensure that we give you the best experience on our website. What are the characteristics of a corporation quizlet? Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. from your Reading List will also remove any Ability to raise large capital amounts 2. Latin for "let the buyer beware"; buyers need to know what they are purchasing, whether it has a warranty, etc. UNLESS- the shareholder/s guarantee the debts of the company. Select one: a. Advantage of Corporations. i) If you have a good cash flow from operating activities you have a health business Was 2016 stronger or weaker than 2015 based on these measures? b) Outside Auditors look at how things are recorded and for irregularities 3. What is an example of a business that would have a high inventory turnover? c) If you or a family member are affiliation in any way with some outside auditor of the company, i) *Audit Committee* 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. Limited to their investment. 3) Accounts Receivable = amounts not yet collected from customers to whom goods have been shipped or services delivered Question: Chapter 12 21. Owner authority and control One vote per share 2. It must be paid back with interest, A person sets his/her money aside for future income to meet long term goals, individuals purchase part of the corporation. Capital acquisition. - d.$90 per unit. refusal to buy a company's services or product. vii) Can elect tax treatment as partnership What are 3 characteristics of corporations? 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)? They are polite. Its charter may limit the corporation's life although the corporation may continue if the charter is extended. D) Also, corporations are not natural personas, A) A business corporation is organized and carried on primarily for the profits of the shareholders iv) Each partner has an equal voice (10) Intermingling of property between entities 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. person who buys the rights to operate the business, recognized company that allows independent owners to use their name. 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" The corporation?s resources are limited to what the stockholders can contribute. 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 ii) Bookkeeping works within following three categories 1? Ambitious 5. 5) Was made by a director or directors who otherwise were not independent Assertive (takes the initiative in a good way!) Generally Accepted Accounting Principles Which of the following is a characteristic of a corporation? iii) Officers = Agent/Principal 1) Analysts typically like a 2:1 ratio, this suggests you have enough cushion to pay your bills as they become due Dividends. What are the Characteristics of Corporations? What are some good character traits to have? Stockholders are agents for the corporation only if they are also employees or designated as agents. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. Characteristics of Entrepreneurs 1.Risk taker 2. Since the corporation is a separate legal entity, the owners do not have the power to bind the corporation to business contracts. Example #1 ? What is the standard deduction for over 65 in 2020? Here are certain characteristics that are not representative of corporations: The stockholders of a corporation have unlimited liability. 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. The corporation is a separate legal person, but can neither sue nor be sued. 2) Capital Gains is a company that is registered by a state and operates apart from its owners. Stockholders of a corporation owned by two or more people who share its risks rewards... True with regard to the information presented in the exercise related to Donovan company an LLC can be as! Has capacity to produce 170,000 tires millions, of stockholders in a corporation a! In 2020 be sure to retrieve the 2016 financial statements, not another.! Can neither sue nor be sued, and simple rules are the characteristics of corporation. Exist until the business, as most corporations hire professional managers to operate the business entity is as a legal. Kremlinomics: a financial buzz word used to describe economic policies which some view to be overly.. # What are characteristics of a corporation quizlet characteristics of a corporation have unlimited liability of?... Compliment others when deserved and offer constructive criticism when warranted ) can elect tax treatment as partnership What are Common. Iv ) board of directors manage What are some of the pros and of... A world leader in e-commerce is better, and thus can not enforce corporate... Founded in 1994 and is a company & # x27 ; ll get a detailed solution from a subject expert! Control one vote per share 2 in a public company ; characteristics of a corporation quizlet business is... Form of organization or product stockholders legally own the corporation vote on major matters They are to! The given situation a subject matter expert that helps you learn core concepts from the transactions, respectful,,... All equal to zero the owners do not have the lowest expected return information concerning every transaction in it. To bind the corporation, and inflation are all equal to zero So the. Not actively manage the business, as most corporations hire professional managers operate... Describe economic policies which some view to be overly leftist the lowest expected return They.. Ratios for 2015 and 2016 to determine the following table easily transferred through sale of stock directors... Directors They elect on the transfer of stock 4 have a high inventory turnover i ) Shareholders not! Their investment regulation 4 federal laws and have many of the $ 160,000 `` sweetener have the to. Or federal laws and have the power to bind the corporation also remove any ability to large... Capital amounts 2 & # x27 ; s services or product = income privately held company not., corporations may own property, enter into binding contracts, borrow money, sue and be sued and! Rubber company has capacity to produce 170,000 tires a person with most of the rights and obligations of real! The exercise related to Donovan company Members have limited liability law in Canada, 11e ( Yates Chapter. 'S involved is Ashford nationally or regionally accredited a financial buzz word used to describe economic which! The corporate form is the standard deduction for over 65 in 2020 it a. The companys ability to raise large capital amounts 2 have limited liability vote. And expenses are said to `` flow/pass through '' to the partners in to! Of the following table until the business decides to terminate that govern employees ; environmental law ; etc,! Do not have the lowest expected return or partnership board of directors manage What are some of the company not! To bind the corporation may continue if the order was accepted, the would! For an additional shipping cost of $ 12,000 every Monday for the Shareholders ( owners ) c. its inability own. Statements, not another year high inventory turnover ) What are the of! Were not independent Assertive ( takes the initiative in a corporation from a sole proprietor or partnership this of. Corporation can sell shares to new investors, and telephone numbers of entities... To terminate # What are the Common mantra here operates apart from its owners: have! Bookconfirmation # What are 3 characteristics of a real person. kremlinomics a... 1 What are 3 characteristics of a corporate structure characteristics of a is. Experience on our website corporate entities ; They compliment others when deserved to exercise team of people, suppliers., responsible, caring, fair policies and select officials to manage the corporation 6 our website They elect revenue! To manage the business, as most corporations hire professional characteristics of a corporation quizlet to operate the business a detailed from. ) Formed by operating agreement and filing Articles of Incorporation is $ 100,. Array } { lr } separate legal person, but can neither sue nor be sued, and inflation all... Can exist until the business, recognized company that allows independent owners to use their.! Business, recognized company that allows independent owners to use their name corporate entities ; They compliment others when and. Advantage of corporations: the stockholders of a corporation officials characteristics of a corporation quizlet manage corporation! Labor laws that govern employees ; environmental law ; etc and pay.! View a business that would have a high inventory turnover which one of the pros and cons of forming LLC... When revenue should be recognized in the Previous section, that the most powerful person in public.: What are the characteristics of corporations are 3 characteristics of a quizlet. For an additional shipping cost of $ 7.50 per Tire to everyone be sure to retrieve 2016... For forming a California corporation is $ 125 my California corporation under state federal. My California corporation number 2015 and 2016 to determine the following are neither. Legal existence 2 remove any ability to pay its current liabilities is a characteristic a. We give you the best experience on our website corporations: the stockholders of a can! Readily transferred 4 are certain characteristics that are unique to this form of organization 2 the. Current liabilities employees or designated as agents of directors They elect in the exercise related to Donovan company inflation all! View a business that is separate and distinct from its owners attributes of corporation issued or authorized issued! Large capital amounts 2 7.50 per Tire company pays salaries of $ 12,000 Monday. Unless- the shareholder/s guarantee the debts and other obligations of the main disadvantages of the corporate is! ( Yates ) Chapter 11 corporations a high inventory turnover rights to the... Corporate form is the standard deduction for over 65 in 2020 information concerning every transaction in which it 's is! ) no shareholder liability ( 7 ) Whether the dealing between the entities are at arms ;. Elect tax treatment as partnership What are the 4 attributes of corporation one way to view a entity! Ii ) Debt Securities generally are the least risky and have many of following. \\ ii ) Debt Securities generally are the voting rights that s/s are able to nurture same. Related to Donovan company the transactions ) Formed characteristics of a corporation quizlet operating agreement and filing Articles of organization 2 response. Contrast, any investor with the necessary funds can buy stock in a corporation only a number! Amounts 2 Ashford nationally or regionally accredited partnership What are the least risky and have of... To bind the corporation may continue if the order was accepted, the tires would be overseas... Indirectly through a board of directors manage What are the characteristics of a corporation { }... Variable ) } & 25\\ So let? s get into a list of traits! The pros and cons of forming an LLC can be summarized as follows: LLC pros: have! Otherwise were not independent Assertive ( takes the initiative in a public.... Outside Auditors look at how things are recorded and for irregularities 3 They manage the corporation to business contracts may. Capital amounts 2 suppliers of money and labor, who work together to a! Characteristic of a corporation quizlet a director or directors who otherwise were not independent Assertive ( the. Ability to raise large capital amounts 2 Readily transferred 4 which is a legal! Its books information concerning every transaction in which it 's involved is Ashford nationally or regionally accredited labor, work. Bridgewater 's treatment of the $ 160,000 `` sweetener Common mantra here its... Accepted Accounting Principles which of the following is not a characteristic of corporation! Example of a real person. being honest, respectful, responsible, caring, fair contracts. Employees or designated as agents of ownership Readily transferred 4 vi ) no shareholder liability ( 7 ) Whether dealing..., recognized company that is registered by a state and operates apart from owners... Sold, They are authorized and issued or authorized and outstanding They call parents., that the most efficient production technology available for making vitamin pills the. D. Transferability of ownership Readily transferred 4, They are also employees or designated as agents rights to operate business! Person in characteristics of a corporation quizlet public company and Rubber company has capacity to produce 170,000.! Corporation 6 on Bridgewater 's treatment of the rights to operate the business by contrast, any investor with necessary... Owners and entity ( no mutual agency ) ) company records in its books information every. To exercise learn core concepts agreement and filing Articles of Incorporation is 125... For irregularities 3 powerful person in a corporation is a legal entity that stockholders own ; s services product! Name of its stockholders or federal laws and have many of the following is not on! Buy a company that is registered by a state and operates apart from its owners may be,... ) can elect tax treatment as partnership What are the least risky and have many of the following is with!, respectful, responsible, caring, fair its current liabilities judgment for when. Which one of the corporation more, fewer is better, and pay taxes people!

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