1 Section 1-Smitty.pdf - Corporations​ a form of business organization recognized by law as a separate legal entity having all the rights of an

1 Section 1-Smitty.pdf - Corporations​ a form of business...

This preview shows page 1 out of 1 page.

Corporations - a form of business organization recognized by law as a separate legal entity having all the rights of an individual Forming a Corporation Formal legal arrangement- must incorporate/file for permission from the national government or the state where the business will have its headquarters Charter- permission to create a corporation (states name of company,address, purpose of business, & the other features of business) Chart for Corporations Stock-owning ownership certificates in the firm Stockholder/Shareholder- investors that had shares sold to them Advantages of a Corp 1. Ease of raising financial capital (sell stock or issue bonds)
Image of page 1

You've reached the end of your free preview.

Want to read the whole page?

Unformatted text preview: 2. Directors can hire professional managers to run the firm 3. Provides limited liability for its owners (corporation is responsible; not its owners of the debts) 4. Unlimited life 5. Ease of transferring ownerships Disadvantages of a Corp 1. Difficulty & expense of getting a charter 2. The owners (shareholders) have little say in how the business if run after they have voted for the board of directors 3. Double taxation (shareholders’ dividends are taxed twice-once as corporate profit & again as personal income 4. Subject to more government regulations...
View Full Document

  • Fall '19
  • Rebekah Sewell

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors