d. overhead costs. v) Common shareholders elect board and vote on major matters 3) Any independent internal audit function (even if part-time) should be in place and report directly to the audit committee The filing fee for Articles of Incorporation is $100. If you continue to use this site we will assume that you are happy with it. 1) Land, equipment, machinery, office equipment 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 What theory is involved in the modern corporation? 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. UNLESS- the shareholder/s guarantee the debts of the company. CHARACTERISTICS OF A CORPORATION 1. Nature of Communication. The same is true for any lawsuits or insurance claims against the company. a. A) No requirement that a corporation incorporate in the state of its principal place of business, it can incorporate under the laws of whatever state best suits its needs A company shareholder is personally liable for the debt of the corporation. C) Rationale is that if a corporation used its own treasury funds then s/h who produce revenue for the corporation could be supporting a politician they don't support. boycott. What are the characteristics of a corporation quizlet? 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? 2. 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 Duration of life 3. So, the minimum grand total for forming a California corporation is $125. B) Directors are responsible for the shareholders of the corporation. 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. They are kind to everyone. 2) Was not made in good faith; b) Limited partners have no voice in the active management of the partnership Removing #book# vi) Majority decision making, i) Partnership w/ general & limited partners 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. What are 2 characteristics of a corporation? Tip. - a. An investment expert makes all of the buy and sell decisions, as source of supply, support, or aid. How do I look up my California corporation number? Save my name, email, and website in this browser for the next time I comment. \end{array} Was 2016 stronger or weaker than 2015 based on these measures? Ability to Influence Others. Often secured by property. b) Outside Auditors look at how things are recorded and for irregularities The corporation?s resources are limited to what the stockholders can contribute. 3) Ability to have influence as to who is put on the ballet as a nominee caveat venditor. J.P. Morgan Chase. lego 41446 friends heartlake city vet clinic. 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. 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 Stockholders are agents for the corporation only if they are also employees or designated as agents. ii) When looking to who can speak on behalf of the corporation you look to the chain of command, California ApproachPseudo Foreign Affairs (to internal affairs), i) California holds the view that if the most important interest in the company are operated in Californiaif 50 percent of the company is run in the statethen California state law will apply, i) Association of two or more people State laws usually include the requirements for issuing stock and distributions to stockholders. 3M. A) The duty to provide the faith and confidence and the duty of care, loyalty and obedience Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. (10) Intermingling of property between entities traits, like being honest, respectful, responsible, caring, fair. G) Attending meetings and actively participating in board discussions 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. 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. Good people understand that others need praise. 5) Was made by a director or directors who otherwise were not independent Was 2016 stronger or weaker than 2015? However, this special order would not have a sales commission. Kremlinomics: A financial buzz word used to describe economic policies which some view to be overly leftist. provide goods and services to business and individual. b) Until shares are first sold to stockholders they are authorized, but unissued Some refer to it as a legal person.. Stock Terminology. Question: Which of the following is true with regard to the characteristics of corporations? Assume the company does not use reversing entries. Nearly every large US company has an intelligence office of some kind. Type of Tax Description Advantages Disadvantages Direct Taxes Personal income tax (time and money).Tax levied on incomes/wages/earnings Progressive - use a marginal tax rate that increases as the amount of taxable income increases, thus effective in income distribution. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. In general, the chief executive officer (CEO) is considered the highest-ranking officer in a company, while the president is second in charge. What are 2 characteristics of a corporation? 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. Corporations are created under state or federal laws and have many of the same legal rights as a person . Example #8 ? 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 2022-11-23. iii) Perpetual life How much does it cost to start a California corporation? Double taxation of dividends c. Charter d. iii) Inherent Authority Infers from the position holds that the agent has authority C) Most important is cash flow from operating activities In some states, stockholders are called shareholders. (4) Overlap in ownership, officers, directors, and personnel; Stakeholder theory of the modern corporation. Clothing should always be clean and ironed properly. b) To rebut the presumption, P must show 7) Deferred Charges = type of asset similar to prepaid expenses, in that they reflect payments made in the current period for goods or services that will generate income in subsequent periods, Accounting & Financial Reporting - Assets - Inventory methods, Inventory = goods held for use in production or for sale to customers ii) Board = Agent/Principal We use cookies to ensure that we give you the best experience on our website. Tip. the making of a program to manage finances through budgeting and investment. Terms in this set (8) Relative ease of transferring ownership rights. 2) Marketable Securities = securities that can be readily sold and converted into cash and are not held for current operations Assume that the real interest rate, predicted inflation, and inflation are all equal to zero. 1 What are the characteristics of a corporation quizlet? 6) Amend the Bylaws, Warrant gives the creditor the option to buy the stock by a particular time, for a particular price, and when this is exercise the corporation has to issue additional stock to cover the obligation, i) A bond is a loan to the company for a fixed period of time The owners of the business entity are representatives of the entity. Ownership is easily transferred through sale of stock 4. a) It is an action in equity brought by a shareholder on behalf of the corporation 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. \begin{array}{lr} 4) Notes or Loans Receivable = somewhat analogous to accounts receivable. Often, a bullwhip type of effect occurs. ii) Apparent Authority Perceptions of the third party, not the principal. Capital acquisition. Business entities are legal organizations that exist by virtue of state law. What are some good character traits to have? i) Must be a quorum present Can adapt to changes Industrial businesses "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. Prepare the December 31 adjusting entry and the entry on Monday, January 6, when Lovrek pays the payroll. Dividends. They remember their manners. Wild, Ken W. Shaw, Financial Accounting: Information for Decisions, Just-in-time manufacturing philosophy reduces all of the following except Owner liability Limited 7. A) Corporations raise money by issuing securities to their investors. a) Presentation of the corporations financial statements fairly and accurately reflects the financial position of the company b) Responsible for establishing the terms of any stock options executives may get as compensation The companys ability to pay its current liabilities. 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" 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. Characteristics of corporations Legal entity Rights as person and citizen Creature of state Limited liability of shareholders Unrestricted transferability of corporate shares Perpetual existence Centralized management Corporate taxation Express powers: 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 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 In general, the chief executive officer (CEO) is considered the highest-ranking officer in a company, while the president is second in charge. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. iii) Officers = Agent/Principal Top 9 Examples of Most Common Corporations. iii) Perpetual life Determine another student's ideal beliefs and the significance of those beliefs for a spa. Owner authority and control One vote per share 2. 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. iv) *Governance Committee* 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)? 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