Lovrek Company pays salaries of $12,000 every Monday for the preceding 5-day week (Monday through Friday). Promoting from within cuts recruitment and training costs. Was 2016 stronger or weaker than 2015? 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. 4) Vote on major transactions ii) Where the corporate form is used as a shield behind which injustice is sought to be done by those who have control of it that equity penetrates the corporate veil, A) 141 says that the business and affairs of every corporation shall be managed by the board unless otherwise provided in the code, or in the certificate of incorporation Upon conversion of all the bonds, Bridgewater Corp. recorded the$160,000 premium as a reduction of paid-in capital. b. 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. 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. Once a public corporation sells its initial offering of stock, it is not part of any subsequent transfers except as a record keeper of share ownership. 1) Here, analysts typically like a 1:1 ratio, suggesting you have as much equity as you owe debt, Accounting & Financial Reporting - Income Statement, A) Within a fiscal year the money that a company earns and the expenses it incurs and the result is the net income or net profit, and at the end of the fiscal year the net income is carried over to the total equity line on the balance sheet All corporations are owned by groups of investors. Positive character traits can be developed in ourselves. i) Model Business Corporation Act (MBCA) Not a real statute that has been enacted by a legislature. How to Market Your Business with Webinars? 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. "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. A corporation is treated as a person with most of the rights and obligations of a real person. 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. Often, a bullwhip type of effect occurs. Separate Legal Existence. 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. Once the approval is received, the corporation must develop its bylaws. B) Represents the difference/surplus between revenues and cost traits. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 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 An entrepreneur is someone who attempts to earn money and make profits by taking the risk of owning and operating their business. However, this special order would not have a sales commission. A) The duty to provide the faith and confidence and the duty of care, loyalty and obedience iii) BJR creates a presumption that, "in making a business decision, the directors of a corporation acted on an informed basis, in good faith, and in the honest belief that the action was taken in the best interest of the company Shareholders who are mutual agents b. Ability to Influence Others. 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 C) Most important is cash flow from operating activities 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 See Answer What is an example of a business that would have a high inventory turnover? iii) At-will or definite period 2) Capital Gains Direct management by the shareholders (owners) c. Its inability to own property d. Shareholders who have limited liability 3. 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 The par value of corporate shares issued represents a corporations legal capital. Retrieve the 2016 Under Armour financial statements at www.sec.gov by clicking on Filings and then searching for Under Armour under Company Filings. These characteristics are noted below. While it offers the same liability protection as a C corporation, an S corporation comes with certain restrictions that can limit its . Example #5 ? 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 stockholder wishing to transfer (sell) stock does not require the approval of the other stockholders to sell the stock. \text{Direct labor}&22\\ What are some of the characteristics of a corporation? Dividends. What are 2 characteristics of a corporation? Influential leaders have a wide collection of skills, including self-confidence, reliability and honesty. 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. Versatile. They think of others. Which is a disadvantage of a corporate structure? b. This statement is true. Double taxation of dividends c. Charter d. Wild, Ken W. Shaw, Financial Accounting: Information for Decisions, Just-in-time manufacturing philosophy reduces all of the following except 15 Simple Traits Of A Truly Good Person Ability to increase capital by selling stocks. Good people understand that others need praise. Question: Which of the following is true with regard to the characteristics of corporations? 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. Ownership. We use cookies to ensure that we give you the best experience on our website. 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. Goal setter 6. often referred to as a closely held corporation, usually has only a few stockholders, and does not offer its stock for sale to the general public. Relevant. Some refer to it as a ?legal person.? Characteristics of a corporation include a alimited lifespan b. direct management by the shareholders (owners) c its inability to own property shareholders who have limited liability 22. Stockholders consist of founders and key investors; not publicly traded; individuals act as s/h and assume the position of directors and officers typically. 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) Board members don't hold the CEO or management team accountable for actions or inactions You can begin building your success by developing these 11 must-have traits of a powerful and successful leader. 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 classifies and analyzes the information and presents it in a set of financial statements Decision maker 3. A corporation is a legal entity, meaning it is a separate entity from its owners who are called stockholders. ability of profit-making organizations to compete with businesses in other countries effectiveness making the right decisions about what products or services to offer customers and how to produce and deliver them efficiency producing needed goods or services quickly and at a low cost domestic goods products made by firms in the United States One of the main disadvantages of the corporate form is the a. (usually, a closed corporation operates like a partnership). Corporations are created under state or federal laws and have many of the same legal rights as a person . Personal assets of stockholders are not available to creditors or lenders seeking payment of amounts owed by the corporation. iii) *Nominating Committee* CHARACTERISTICS OF A CORPORATION 1. (3) Intermingling of funds; Ambitious 5. 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 (10) Intermingling of property between entities The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. i) Factors 1 What are the characteristics of a corporation quizlet? 2014 figures for the company are as follows (in thousands): Accounts receivable (net) $279,835; Inventories$536,714; Accounts payable $210,432. How long does it take for braces to close gaps. A corporation is a legal entity that is separate and distinct from its owners. a) Internal Auditor A. Watch on Forbes: 1. A) The corporation is a separate legal person, but can neither sue nor be sued. Your email address will not be published. ii) Board = Agent/Principal 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 person with ?good character? What are the characteristics of a corporation quizlet? 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)? 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. Limited liability. provide goods and services to business and individual. What are 2 characteristics of a corporation? It advances comprehension, proper understanding, and sharing of information applicable for making decisions. 8 Which is a disadvantage of a corporate structure? 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 Published on 22 Oct 2018. ii) Unlike shareholders, board members may not vote by proxy, A) Regular Meeting Scheduled, can be held without notice, and typically at least quarterly meetings 3) If the corporation becomes insolvent, and its assets must be liquidated, debt securities will have priority over equity securities Who is the most powerful person in a corporation? This gives a corporation a larger pool of resources because it is not limited to the resources of a small number of individuals. They compliment others when deserved. 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 View the full answer. --owned by shareholders. They call their parents regularly. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. is a legal agreement to use the name and sell the products of a parent company in a designated geographic area. Now a new generation of influencers has come on the scene. The most significant of these are: Separate Legal Existence Continuous Life Ability to Acquire Capital Transferability Limited Liability Government Regulations Taxation Governance and Management Let's look at each of these in turn. 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