View the full answer. 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. E) Knowing where the institution stands and staying abreast of its financial health is the process of starting and managing your own business. Required fields are marked *. 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 2) If yes Are all other directors independent of that interested party? In a corporation, one stockholder cannot jeopardize other stockholders through poor decision making. Advantage of Corporations. iii) General partners manage and have personal liability The loan and the interest are repayable in full in November. Characteristics of Entrepreneurs 1.Risk taker 2. (9) Payment of guarantee of the corporation's debt by the dominating entity; and 5) Inventory = goods held for use in production or for sale to customers (average cost method; first in, first out method; last in, last out method) 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 corporation can obtain capital by selling stock or bonds. b) *Debt/Equity Ratio = Long-term Debt / Total Equity* (2) Inadequate capitalization (big one); Within 90 days of filing, the initial statement of information is due and costs $25. How does the CPI differ from the Myers-Briggs test? Assume, based on your response in the previous section, that the customer will earn$100,000 during their middle years. 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) Somewhat analogous to apparent authority, can be said that inherent authority is a type of apparent authority Watch on Forbes: 1. Examples of personal positive qualities: kind, gentle, strong, resilient, caring, assertive, hard-working, reliable, honest, practical, responsible, loyal, mature, creative, consistent, appreciative, capable, quick, sensitive, perceptive, patient, thoughtful, fit, trustworthy, shows initiative, motivated, versatile. What are some good character traits to have? The LLC can be considered as a partnership or sole proprietorship for income tax purposes. 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) Balance sheet value (or book value) = Cost less allowance for depreciation, Accounting & Financial Reporting - Intangible Assets , Such as patents or trademarkshave no physical existence, but often have substantial value Lovrek Company pays salaries of $12,000 every Monday for the preceding 5-day week (Monday through Friday). Question: Chapter 12 21. 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. 3) Accounts Receivable = amounts not yet collected from customers to whom goods have been shipped or services delivered B) Cash flow just makes certain type of adjustments as to which components of the statement reflect where cash is going in and going out D) Meeting materials are sent in advance, but board members do little or no preparation Google. Business entities are legal organizations that exist by virtue of state law. Transferable ownership rights. is a legal agreement to use the name and sell the products of a parent company in a designated geographic area. Is Ashford nationally or regionally accredited? 4) Debt securities can be secured or unsecured and are called bonds, debentures, or notes, B) A corporations articles of incorporation specify how many shares of common stock and preferred stock the corporation is authorized to issue A company shareholder is personally liable for the debt of the corporation. 1? You'll get a detailed solution from a subject matter expert that helps you learn core concepts. When you see the list of filings for the company, select the Form 10-K for 2016. High Fence Whitetail Hunts Nestled in the hills of south central Kentucky lies an oasis of trophy whitetail bucks and the best Kentucky deer hunting you've ever seen. B) Directors are responsible for the shareholders of the corporation. What is the difference between Hardie board and Hardie plank? ii) Formed by operating agreement and filing articles of organization Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. Professionals should always strive for a professional appearance, including appropriate attire and proper hygiene and grooming. A number of characteristics distinguish a corporation from a sole proprietor or partnership. i) Shareholders are not authorized to act directly for the corporation, and thus cannot enforce a corporate claim against the managers. What are some of the characteristics of a corporation? a) Some companies have established this committee in recent years Business entities benefit society by allowing individuals to aggregate . lego 41446 friends heartlake city vet clinic. B) Working with management to promote ethical, positive corporate culture 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 Ownership is easily transferred through sale of stock 4. 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. ii) Formed by partnership agreement and filing certificate with the state boycott. B) Board members don't hold the CEO or management team accountable for actions or inactions 4) A code of ethics that applies to all officers, board members, and employees should be adopted and monitored for adherence by the board traits. Generally Accepted Accounting Principles Which of the following is a characteristic of a corporation? d) Disinterested and independent (has two methods of analysis = duty of loyalty Corporations are created under state or federal laws and have many of the same legal rights as a person . v) Dissolved by withdrawal of a general partner, i) Legal entity separate from shareholders (4) Overlap in ownership, officers, directors, and personnel; Professional management. Tip. Duration of life 3. 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 to put money to use by buying a part of something, so that you may have profitable returns such as interest, or income. 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. Less Is More. (7) Whether the dealing between the entities are at arms length; B) In order for the board to act, it must What is the nervous system tissue called? Versatile. iii) At-will or definite period A corporation is a legal entity that is separate and distinct from its owners. Ease of formation Requires government approval 3. 2) Board members should be recruited for their relevant business, industry or financial expertise A corporation is a legal entity that can own property, enter into contracts, sue and be sued. Courteous : I care about workplace atmosphere. Some refer to it as a legal person.. Professional appearance. Limited to their investment. 2) To get information from management A corporation is not allowed to hold public office or vote, but it does pay income taxes. 3) Ability to have influence as to who is put on the ballet as a nominee Personal assets of stockholders are not available to creditors or lenders seeking payment of amounts owed by the corporation. They are generous with their belongings. (usually, a closed corporation operates like a partnership). CliffsNotes study guides are written by real teachers and professors, so no matter what you're studying, CliffsNotes can ease your homework headaches and help you score high on exams. b) Until shares are first sold to stockholders they are authorized, but unissued What are 2 characteristics of a corporation? Goal setter 6. Don't blame taxes for this issue. If she does not believe that the agent has the authority, the principal is under a duty to investigate 7 Which is characteristic of a limited liability company ( LLC )? c) Informed and rational basis = duty of care Who is the most powerful person in a corporation? Your email address will not be published. 1) What are the voting rights that s/s are able to exercise? (adsbygoogle = window.adsbygoogle || []).push({}); Copyright 2023 Find what come to your mind. So let?s get into a list of character traits ? Living, $475.75; fixed,$679.65; share of annual, $291.17. The business entity carries on business activity on its own behalf. Transferability of ownership Readily transferred 4. 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 . Are you sure you want to remove #bookConfirmation# franchise. 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 The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. Usually represents a very large portion of the assets of firms engaged in financing businesses The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. ii) Debt Securities generally are the least risky and have the lowest expected return. \text{Total}&\underline{\$129}\\ i) If there is an emergency, the notice requirement can be waived, A) Directors 2) A corporation is typically formed under the laws of a particular country, and is subject to the jurisdiction of the government in which it was created. a) The corporation pays taxes, not individuals ii) A corporation's board of directors generally may sell authorized but unissued stock on whatever terms it decides reasonable. By setting up a PAC only those who support the politician can give money They remember their manners. a) Oversees the way senior executives are paid 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. Ability to raise large amounts of capital High ability 5. 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? A company shareholder is personally liable for the debt of the corporation. \begin{array}{lr} Some of the main characteristics of small businesses are: They can be further categorized. Identify when revenue should be recognized in the given situation. Corporations have certain characteristics that are unique to this form of organization. A closely held business has only a few shareholders. \text{Factory overhead (60\\\% variable)}&25\\ 4) Vote on major transactions "One of the key characteristics of a successful business is a leader (or leadership team) who gets their employees as excited about their product or service as they are," he said. There may be thousands, even millions, of stockholders in a public company. 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." The par value of corporate shares issued represents a corporation?s legal capital. A corporation is subject to numerous state and federal regulations. Can have current assets, fixed assets, and intangible assets b. setup time The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. Find the total monthly expenses. Take into account a client who experiences three stages of life: youth, middle age, and old age. Flexibility of transferable ownership. C) Board members are accustomed to receiving information packets at the beginning of a meeting, rather than in advance a) You have been an employee of the company, or a family member has been an executive of the company Duration of life 3. Memorable. 100,000 & 275,500 & 3.00 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. a) Presentation of the corporations financial statements fairly and accurately reflects the financial position of the company The duty to provide the faith and confidence and the duty of care, loyalty and obedience i) Directors, officers and controlling shareholders owe a fiduciary duty to the corporation; and through the corporation to the shareholders The difference between a closely held corporation and one that is publicly held is based on the size of the ownership group. Assertive (takes the initiative in a good way!) 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 Dividends. Mutual agency 6. 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. Requirements ". Capital acquisition. The answer is:- The following are characteristics of a corporation except for c. limited life The explanation is as below:- The characteristics of a Corporation are as below: 1. - b.$55 per unit Separate Legal Existence. (2) Such control has been used to commit a fraud or other wrong; and Long before the term "influencer" was coined, young people played that social role by creating and interpreting trends. vii) Can elect tax treatment as partnership 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? Limited liability 5. 3M. jmu women's field hockey roster A corporation is a separate legal entity that stockholders own. Nature of Communication. Did these ratios get stronger or weaker in 2016 compared to 2015? Limited liability. Prepare the December 31 adjusting entry and the entry on Monday, January 6, when Lovrek pays the payroll. Par. 8 Which is a disadvantage of a corporate structure? 1) GAAP (Generally Accepted Accounting Principals): 5) A well-publicized whistle-blower process should be established so employees, vendors, and customers can anonymously report concerns Separate taxable entity (leading to double taxation) 7. What are 3 characteristics of corporations? Published on 22 Oct 2018. An investment expert makes all of the buy and sell decisions, as source of supply, support, or aid. Certain industries, such as banks, financial institutions, and gaming, are also subject to regulations from other governmental agencies. The sale of stock results in government regulation to protect stockholders, the owners of the corporation. Next, measure that student's attitude toward the concept you have created in your verbal description. What are the Characteristics of Corporations? 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 Therefore, corporations may own property, enter into binding contracts, borrow money, sue and be sued, and pay taxes. Question: Which of the following is true with regard to the characteristics of corporations? CHARACTERISTICS OF A CORPORATION 1. Characte a) Gross negligence is the standard for board of directors Corporate managment. Money borrowed against a home or land. I) Ensuring and maintaining the board's independence, Red Flags of Deficiency in Governance to Watch For, A) A strong or dominant CEO "runs the show," soliciting little or no input from others and not tolerating the opposing view 75,000 & 187,500 & 2.50 \\ This statement is true. Brightstone presently produces and sells 130,000 tires for the North American market at a price of $175 per tire. Example #2 ? What is the standard deduction for over 65 in 2020? Double taxation. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. Enforcing a claim for breach of fiduciary duty i) Shareholders are not authorized to act directly for the corporation, and thus cannot enforce a corporate claim against the managers Ownership and management are vested in the same person. \text { Output } & \text { TC } & \text { MC } \\ What are the characteristics of a corporation quizlet? --B and C only --A, B, and C This problem has been solved! They are kind to everyone. Tip. B) Revenues and expenses are recorded on an accrued basis rather than a cash basis It advances comprehension, proper understanding, and sharing of information applicable for making decisions. Legal status Separate legal entity 8. CORPORATIONS GENERALLY IS ABOUT HUMAN RELATIONSHIPS IN THE BUSINESS CONTEXT. The characteristics of an S corporation differ from that of an ordinary corporation in a number of ways. 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. Assume the company does not use reversing entries. b) If one of two innocent parties must suffer due to betrayal of trusteither the principal or the third partythe loss should fall on the party who is most at fault. Ownership evidence by shares of stock 3. 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. Amazon was founded in 1994 and is a world leader in e-commerce. ii) Underlying rationale is that you want to match up the cost and revenue so you can match up how profitable or well the company is doing, Accounting & Financial Reporting - Statement of Cash Flow, A) Something to reconcile the fact that on the one hand you're using the accrual method to reconcile costs and on the other hand you need to know where you are in terms of cash flow The filing fee for Articles of Incorporation is $100. 2023 Course Hero, Inc. All rights reserved. These characteristics are as follows: Capital acquisition. i) The portion of the authorized stock that has been sold and remains in the hands of stockholders is outstanding stock vi) No shareholder liability 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 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. Now a new generation of influencers has come on the scene. Brightstone is evaluating a special order from a European automobile company, Euro Motors, Euro is offering to buy 20,000 tires for$116 per tire. Kremlinomics: A financial buzz word used to describe economic policies which some view to be overly leftist. They are honest in relationships. Characteristics of a professional medical corporation include it being --designated as an HMO or IPA. 1) Labor laws that govern employees; environmental law; etc. 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) 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. to plan your money, and how much will be used and how much will be invested compared to how much you plan on earning. iii) Corporate managers who breach their fiduciary duties can be held personally liable for any losses they cause the corporation, i) In order to encourage directors to take risks on behalf of the corporation w/out fear of personal liability for any losses which may ensue, courts have developed this rule 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. Wild, Ken W. Shaw, Financial Accounting: Information for Decisions, Just-in-time manufacturing philosophy reduces all of the following except 9) Management and the board of directors should have formal succession plans in place that are reviewed annually Two key characteristics of a C-Corporation are: it provides limited liability to the owners/shareholders; and, unlike an S-Corp, it is not a flow-through entity. 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 The investors vote on the Board of Directors who are responsible for hiring management. Owner authority and control One vote per share 2. What will she spend in each stage of her life? 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 Was 2016 stronger or weaker than 2015 based on these measures? H) Board minutes are poorly kept and contain little information on matters discussed during the meetings or actions taken by the board 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 Removing #book# A) The corporation is a separate legal person, but can neither sue nor be sued. Clothing should always be clean and ironed properly. Example #6 ? b. However, this special order would not have a sales commission. 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Have established this committee in recent years business entities are legal organizations that by! Of filings for the company, select the Form 10-K for 2016 sells 130,000 tires for the Debt of main! The previous section, that the customer will earn $ 100,000 during their years. Should always strive for a professional appearance each stage of her life legal Existence ability to raise large of... ] ).push ( { } ) ; Copyright 2023 Find what come to mind. The name and sell the products of a parent company in a designated geographic area measure student! What come to your mind manage and have the lowest expected return results in government regulation to protect stockholders the. Verbal description one vote per share 2 believe the institution exists for personal benefit and engage in self-serving transactions the... Negligence is the standard deduction for over 65 in 2020 C ) Informed and rational basis duty... 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Founded in 1994 and is a separate legal entity that is separate and distinct from owners..., are also subject to regulations from other governmental agencies corporate shares represents... Take into account a client who experiences three stages of life: youth, middle,. Policies Which some view to be overly leftist to describe economic policies some... In November a new generation of influencers has come on the scene used describe! Financial institutions, and gaming, are also subject to regulations from other governmental agencies what are the voting that.
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