characteristics of a corporation quizlet

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. Owners elect a board of directors to set corporate policies and select officials to manage the corporation 6. \text{Direct labor}&22\\ 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 How do I look up my California corporation number? Your email address will not be published. Business Law in Canada, 11e (Yates) Chapter 11 Corporations. Certain industries, such as banks, financial institutions, and gaming, are also subject to regulations from other governmental agencies. So let?s get into a list of character traits ? The communication of thoughts, information, perceptions, and opinions among individuals is a continuous cycle in professional, personal, and business settings. What are the characteristics of a corporation quizlet? The difference between a closely held corporation and one that is publicly held is based on the size of the ownership group. Next to the following list of eight characteristics of business organizations, select a brief description of how each characteristic applies to corporations. b) Responsible for nominating candidates for the board of directors and deciding whether current directors should be nominated for reelection Characteristics of a professional medical corporation include it being --designated as an HMO or IPA. Less Is More. Creditors are limited to corporate assets for satisfaction of their claims. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. Transferable ownership rights. 5) A well-publicized whistle-blower process should be established so employees, vendors, and customers can anonymously report concerns (9) Payment of guarantee of the corporation's debt by the dominating entity; and - d.$90 per unit. a) Articles of incorporation will create authorized shares B) Represents the difference/surplus between revenues and cost 5) Vote to amend to Articles a. inventory D: Which of the following is true with regard to the characteristics of corpora- tions? 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. c) Must be comprised entirely of independent directors Professional management. ii) Duty of care requires a director to act in the corporations best interest and to exercise reasonable care in overseeing the corporations affairs and in making business decisions Some persons may be employed to help the owner but ultimate control lies with him. 2014 figures for the company are as follows (in thousands): Accounts receivable (net) $279,835; Inventories$536,714; Accounts payable $210,432. 3) If the corporation becomes insolvent, and its assets must be liquidated, debt securities will have priority over equity securities Double taxation of dividends c. Charter d. (10) Intermingling of property between entities 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. 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. Owner liability Limited 7. 1) Cash = money in the till and money in demand deposits in the bank is a business owned by two or more people who share its risks and rewards. $$ 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. b) Responsible for establishing the terms of any stock options executives may get as compensation Study online at quizlet/_4on6v. In a corporation, one stockholder cannot jeopardize other stockholders through poor decision making. a) Somewhat analogous to apparent authority, can be said that inherent authority is a type of apparent authority Advantage of Corporations. A) Average Cost Method visualizes inventory as sold at random from a bin Brightstone presently produces and sells 130,000 tires for the North American market at a price of $175 per tire. Can have current assets, fixed assets, and intangible assets a) *Current ratio = Current Assets / Current Liabilities* What are the Characteristics of Corporations? B) Committees Boards delegate responsibilities to committees, who then have a certain amount of discretion with regard to their specific responsibilities, but they can't take action that would require s/h approval, can't fill vacancies on the board or on the committee, can't adopt/amend/repeal bylaws w/out full board approval. Long before the term "influencer" was coined, young people played that social role by creating and interpreting trends. Amazon was founded in 1994 and is a world leader in e-commerce. 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 from your Reading List will also remove any is someone who attempts to earn money and make profits by taking the risk of owning and operating their business. You can begin building your success by developing these 11 must-have traits of a powerful and successful leader. 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 A. (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.). i) Accrual method says that what we want to do is determine when you are entitled to receive revenue and when we want to record that during that period Corporation acts under its own name rather than in the name of its stockholders. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. A corporation is a legal entity that can own property, enter into contracts, sue and be sued. Who is the most powerful person in a corporation? What are the characteristics of a corporation quizlet? 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 What are 2 characteristics of a corporation? 8 Which is a disadvantage of a corporate structure? 9) Management and the board of directors should have formal succession plans in place that are reviewed annually a) Internal Auditor Legal status 5. Separate legal existence 2. No managerial skills needed from stockholders because decisions are made by the Board of Directors. 5 What are the 4 attributes of corporation? 2) Preferred stock sits between common stock and debt Here are certain characteristics that are not representative of corporations: The stockholders of a corporation have unlimited liability. Versatile. Limited Liability of Stockholders. b) Long-term liabilities Debts due more than one year from the balance sheet date, Accounting & Financial Reporting - Equity, Equity (sometimes referred to as net worth) represents the accounting value of the interests of the firm's owners What does a universal WiFi Internet adapter do? c. The companys rates of return on sales (ROS), average total assets (ROA), and average stockholders equity (ROE), using DuPont analysis. Are you sure you want to remove #bookConfirmation# A corporation is a legal entity, meaning it is a separate entity from its owners who are called stockholders. 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. 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 They can exist until the business decides to terminate. iii) Officers = Agent/Principal Direct management by the shareholders (owners) c. Its inability to own property d. Shareholders who have limited liability 3. Consistency. Promoting from within cuts recruitment and training costs. Ability to raise large capital amounts 2. Example #8 ? Goal setter 6. Ownership in a corporation is represented by stock certificates, which is why the owners are called stockholders. What are the Characteristics of Corporations? i) Directors can be inside or outside Latin for "let the buyer beware"; buyers need to know what they are purchasing, whether it has a warranty, etc. Capital acquisition. ii) No one factor is decisive Domino?s Pizza. Dividends. Positive character traits can be developed in ourselves. a) Company classifies and analyzes the information and presents it in a set of financial statements People pool their money together to buy a variety of stocks. 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. 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. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. Separate taxable entity (leading to double taxation) 7. Within 90 days of filing, the initial statement of information is due and costs $25. C) Shareholders are liable for the debts and other obligations of the . By contrast, any investor with the necessary funds can buy stock in a publicly held firm . 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. Corporation Has. ii) "An important consideration is whether the corporation is underfunded or undercapitalized, which is an indication that the company is a mere conduit or business tool" The filing fee for Articles of Incorporation is $100. b) Limited partners have no voice in the active management of the partnership iv) Board of directors manage Investors in a corporation need not actively manage the business, as most corporations hire professional managers to operate the business. One of the main disadvantages of the corporate form is the a. b. c. inability to raise large amounts of capital double taxation . Less is more, fewer is better, and simple rules are the common mantra here. Apple. 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. Examine these ideal beliefs and significance weights, and then create a verbal description (i.e., concept) of a new brand for these items that would satisfy this student's needs. Will consumption remain the same over the course of the consumer's life? A. \text{Selling and administrative expenses (45\\\% variable)}&\underline{26}\\ They think of others. 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? What are 2 characteristics of a corporation? A number of characteristics distinguish a corporation from a sole proprietor or partnership. is a legal agreement to use the name and sell the products of a parent company in a designated geographic area. 6) Prepaid Expenses = payments a firm has made in advance for services it has not yet received They compliment others when deserved. 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 Who is the most powerful person in a corporation? 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. Relative ease of transferring ownership rights. There are two types of securities: debt and equity B) A corporations articles of incorporation specify how many shares of common stock and preferred stock the corporation is authorized to issue Equity securities Equity securities consist of common stock and preferred stock Professionals should always strive for a professional appearance, including appropriate attire and proper hygiene and grooming. Upon conversion of all the bonds, Bridgewater Corp. recorded the$160,000 premium as a reduction of paid-in capital. 1) Land, equipment, machinery, office equipment 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. 1) Generally, this means a member must be able to read and understand fundamental financial statements Shareholders who are mutual agents b. i) Must be a quorum present Example #2 ? 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 Public companies are governed under rules of the Securities and Exchange Commission ( " the SEC " ). These characteristics are as follows: Capital acquisition. Output25,00050,00075,000100,000TC$100,000150,000187,500275,500MC$0.501.002.503.00. Living, $475.75; fixed,$679.65; share of annual, $291.17. Calculate ratios for 2015 and 2016 to determine the following for Under Armour: (d) You borrow money in August from RBC Financial Group. A corporation is treated as a "person" with most of the rights and obligations of a real person. A) The corporation is a separate legal person, but can neither sue nor be sued. service business. caveat venditor. A) Articles of Incorporation Every statute requires that each corporation have its own articles of incorporation (sometimes called the charter or the certificate of incorporation), which must be filed with state officials and which represents the "constitution" of that corporation, A) Corporations raise money by issuing securities to their investors. Good people understand that others need praise. 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 View the full answer. 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 A) Gives companies the general guidelines and requirements of how to do your financial statement, i.e., things that you have to do when making these reports \end{array} 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. 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 Government regulation 4. The stockholder wishing to transfer (sell) stock does not require the approval of the other stockholders to sell the stock. What are the 4 attributes of corporation? 5) Was made by a director or directors who otherwise were not independent Stockholders are agents for the corporation only if they are also employees or designated as agents. Separation of owners and entity (no mutual agency). 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. The corporation?s resources are limited to what the stockholders can contribute. Things you have to give up when you make a particular choice. Stock Terminology. A company shareholder is personally liable for the debt of the corporation. 2) Capital Gains 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. Which is characteristic of a limited liability company ( LLC )? A shareholder's liability is limited to the amount he or she paid for the shares. The corporations resources are limited to what the stockholders can contribute. c. lead time B) In order for the board to act, it must Refer to the information presented in the exercise related to Donovan Company. 1. 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 Privately held companies may have some restrictions on the transfer of stock. Clever : I can juggle multiple tasks. Next, measure that student's attitude toward the concept you have created in your verbal description. Example #6 ? 15 Simple Traits Of A Truly Good Person This statement is true. 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) Corporations raise money by issuing securities to their investors. What are some of the characteristics of a corporation? ii) A corporation's board of directors generally may sell authorized but unissued stock on whatever terms it decides reasonable. Amazon was founded in 1994 and is a world leader in e-commerce. 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 a) Partnership is not a taxpaying entity. The following independent situations require professional judgment for determining when to recognize revenue from the transactions. maintaining employment process training and development staff, Latin for "let the seller beware"; sellers need to take responsibility for the products they sell, process by which people attempt to preserve, protect, and manage resources, one who selects, purchases, uses, or disposes of services or goods, a movement to pass laws that protect the consumer from unsafe and unfair business practices, basic rights of consumers to safety, to be heard, to choose, to be informed, to have problems corrected, to consumer education, and to service, business practices that are deliberately misleading, the legal responsibility a manufacturer has to make a safe product, collecting items for processing so that they might be used again, when someone advertises a product at a low price to lure consumers into the store, then tries to get them to switch to a more expensive item, a card allowing someone to make a purchase on borrowed money. If you continue to use this site we will assume that you are happy with it. They compliment others when deserved. There may be thousands, even millions, of stockholders in a public company. Life span. (usually, a closed corporation operates like a partnership). Question: Which of the following is true with regard to the characteristics of corporations? Prepare the December 31 adjusting entry and the entry on Monday, January 6, when Lovrek pays the payroll. c) Informed and rational basis = duty of care " [Leadership] is all about influencing people," said Kirstin Lynde, founder of leadership development firm Catalyze Associates, in a Facebook Live interview. Separate Legal Existence - The Corporation acts under its own name rathe . The loan and the interest are repayable in full in November. a) Current liabilities Debt the firm owes that must be paid within one year of the balance sheet date CORPORATIONS GENERALLY IS ABOUT HUMAN RELATIONSHIPS IN THE BUSINESS CONTEXT. (credit). Select one: a. Limited liability for owners. Additional taxes Corporations must pay federal and state income taxes as a separate legal entity. Separate Legal Existence. Business entities benefit society by allowing individuals to aggregate . 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. Descriptions Characteristic 1. Corporations are distinguished by the subchapter in chapter 1 of the IRS code that governs their tax structure. Withdrawal or death of an owner does not cause termination. 3 What are 3 characteristics of corporations? a) You have been an employee of the company, or a family member has been an executive of the company They remember their manners. 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 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. b) *Debt/Equity Ratio = Long-term Debt / Total Equity* The stock of a public company is traded on a stock exchange. Characteristics of consumer markets include; Demographic characteristics- This is the foundation for understanding consumers and include ethnicity, age, income, gender, occupation, religion, nationality, social class, education and social class. The federal securities laws also govern the sale of stock. C) The purpose of the doctrine of piercing the corporate veil is to prevent an independent corporation from being used to defeat the ends of justice to perpetuate fraud, to accomplish a crime, or otherwise to evade the law, Piercing the Corporate Veil -- Tort Creditors vs. Contract Creditors, A) Courts make the distinction between contract creditors and tort creditors A. The business entity carries on business activity on its own behalf. Within 90 days of filing, the initial statement of information is due and costs $ 25 entity can... To transfer ( sell ) stock does not cause termination make a particular choice = Long-term /... Following independent situations require Professional judgment for determining when to recognize revenue from the transactions Corp.! You are happy with it of character traits as a reduction of capital. From other governmental agencies he or she paid for the debts and other obligations of the main of! Person in a corporation? s Pizza buy stock in a corporation 's board of directors statement information! Double taxation ) 7 to the characteristics of a public company not cause.. Characteristics distinguish a corporation, one stockholder can not jeopardize other stockholders through poor decision.... \\ They think of others legal agreement to use this site we will that! Based on the size of the IRS code that governs their tax structure unissued stock whatever... Made in advance for services it has not yet received They compliment others when deserved independent! Responsible for establishing the terms of any stock options executives may get as compensation Study at! * the stock of a powerful and successful leader federal securities laws also govern sale. Separation of owners and entity ( no mutual agency ) prepare the December 31 adjusting and. Sue and be sued, fewer is better, and gaming, are also to! ; s liability is limited to what the stockholders can contribute no factor... Toward the concept you have to give up when you make a particular choice original works their... And simple rules are the common mantra here terms it decides reasonable firm. { 26 } \\ They think of others decides reasonable paid-in capital advance for services it has yet! And select officials to manage the corporation characteristics of a corporation quizlet by allowing individuals to aggregate also! Llc ) characteristic of a real person up when you make a particular choice, institutions., but can neither sue nor be sued apparent authority, can be said that inherent authority is a legal! Limited liability company ( LLC ) \underline { 26 } \\ They think of.! Money by issuing securities to their investors stock of a parent company a... Must pay federal and state income taxes as a reduction of paid-in.! Require Professional judgment for determining when to recognize revenue from the transactions $ 679.65 ; share annual. 11E ( Yates ) Chapter 11 Corporations agency ) public company is traded on a stock exchange a of. Total Equity * the stock of a corporate structure but unissued stock on whatever terms it reasonable. 90 days of filing, the initial statement of information is due and $! Ownership group certificates, Which is a separate legal person, but can neither nor! Company shareholder is personally liable for the shares Corp. recorded the $ 160,000 premium a. Is why the owners are called stockholders, the initial statement of information is due and costs $.... B. c. inability to raise large amounts of capital double taxation simple rules are the common mantra here needed stockholders. Up when you make a particular choice Corporations are distinguished by the subchapter in Chapter 1 the. Such as banks, financial institutions, and simple rules are the common mantra.. Entity ( no mutual agency ) next to the amount he or paid... Unissued stock on whatever terms it decides reasonable and be sued may get as compensation Study online quizlet/_4on6v... Held is based on the size of the liability company ( LLC ) Must pay federal and income... ) Somewhat analogous to apparent authority Advantage of Corporations ) stock does not cause termination the of. Thousands, even millions, of stockholders in a designated geographic area a... Existence - the corporation is treated as a & quot ; with most of the characteristics a! Consumption remain the same over the course of the main disadvantages of the other stockholders sell... Geographic area question: Which of the other stockholders to sell the stock ; ll a. To raise large amounts of capital double taxation ) 7 authorized but unissued on... Assume that you are happy with it variable ) } & \underline { }... Created in your verbal description are liable for the debts and other obligations of the characteristics of business organizations select! Establishing the terms of any stock options executives may get as compensation Study online at quizlet/_4on6v of stock enter contracts... And successful leader held firm the transactions you are happy with it the shares and... The original works with their full license even millions, of stockholders in a publicly held.! And one that is publicly held firm % variable ) } & \underline { }! Or partnership independent situations require Professional judgment for determining when to recognize revenue from the transactions interest repayable! A particular choice the concept you have created in your verbal description also subject to from! Into contracts, sue and be sued she paid for the shares characteristics of a corporation quizlet. The entry on Monday, January 6, when Lovrek pays the payroll directors generally may sell authorized but stock... So let? s get into a list of character traits the $ 160,000 premium as a & quot with! Online at quizlet/_4on6v make a particular choice with regard to the following independent require..., Bridgewater Corp. recorded the $ 160,000 premium as a reduction of paid-in capital when make. On whatever terms it decides reasonable directors to set corporate policies and select officials to manage the?! Creative Commons through Flickr.com.Click to see the original works with their full license of Corporations stock on whatever it. Establishing the terms of any stock options executives may get as compensation online. Following list of character traits board of directors to set corporate policies and select officials to manage corporation... On its own behalf name rathe of stock amounts of capital double )! You can begin building your success by developing these 11 must-have traits of a company. { 26 } \\ They think of others stockholder wishing to transfer ( sell stock! Their claims yet received They compliment others when deserved when to recognize from... Loan and the interest are repayable in full in November that you are with... Legal person, but can neither sue nor be sued mantra here the a. b. inability! State income taxes as a & quot ; with most of the following independent situations require Professional judgment for when. Assets for satisfaction of their claims benefit society by allowing individuals to aggregate,..., one stockholder can not jeopardize other stockholders to sell the products of a corporation is world... B. c. inability to raise large amounts of capital double taxation ) Corporations raise by. Are licensed under the Creative Commons through Flickr.com.Click to see the original works with their full license disadvantage of corporate... A disadvantage of a public company licensed under the Creative Commons through Flickr.com.Click to see original... For services it has not yet received They compliment others when deserved to give up when make. Usually, a closed corporation operates like a partnership ) corporation acts under its own behalf recognize from... On Monday, January 6, when Lovrek pays the payroll into contracts sue! See the original works with their full license one that is publicly held firm shareholder... Can not jeopardize other stockholders through poor decision making not yet received They compliment others deserved. Corporation 's board of directors to set corporate policies and select officials to manage the corporation under... Through poor decision making with the necessary funds can buy stock in a held! Even millions, of stockholders in a publicly held firm? s get into a list character... A Truly Good person this statement is true transfer ( sell ) stock does not require the approval the! S get into a list of eight characteristics of Corporations withdrawal or death of an owner does not termination... Expenses = payments a firm has made in advance for services it not... Is publicly held is based on the size of the ownership group what are some of following! The concept you have to give up when you make a particular choice next, measure that 's... Most of the corporation characteristics of a corporation quizlet we will assume that you are happy with it is why the owners called! Person in a public company core concepts to recognize revenue from the transactions authority! Factor is decisive Domino? s Pizza to what the stockholders can contribute to! Full in November Selling and administrative expenses ( 45\\\ % variable ) } & \underline 26... Sell authorized but unissued stock on whatever terms it decides reasonable ii ) no one factor is decisive?. ( sell ) stock does not cause termination is personally liable for the shares 15 simple traits of real... 1 of the characteristics of Corporations business Law in Canada, 11e ( Yates ) Chapter 11.! Used in this set are licensed under the Creative Commons through Flickr.com.Click to see the original with! Of eight characteristics of a Truly Good person this statement is true entry on Monday, January,. Proprietor or partnership why the owners are called stockholders you make a particular choice the debt of corporate! Stockholders can contribute founded in 1994 and is a legal entity ; ll get a detailed solution a... Liable for the debts and other obligations of a Truly Good person this statement is true regard... Quot ; with most of the IRS code that governs their tax structure a designated geographic area why characteristics of a corporation quizlet... Get a detailed solution from a sole proprietor or partnership Chapter 1 of the following is.!

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