Corporations - ADM 1300 A

Corporations - ADM 1300 A - ⋅ Number of directors ⋅...

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1. Corporations  – a business that is a separate legal entity that is liable for its own debts  and whose owners’ liability is limited in their investment Advantages:  limited liability; continuity  Disadvantages:  cost; legal help meeting government regulations; double taxation Economic/Social Benefits of Corporations Most effective means of managing productive resources: land, labour, capital Professional management and research Higher living standards Circulation of assets processed: the more you produce something the cheaper is costs  to buy it, more people are able to enjoy these things Bigness monopolies,  morale,  price fixing Environmental concerns Political concerns Forming the Corporation Creating a person Done either Federally or Provincially Articles of Incorporation/Charters of Corporations must be drawn Name of corporation (not now in use) Type/number of shared to be issued
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Unformatted text preview: ⋅ Number of directors ⋅ Location of operations ⋅ Purpose of business Control of the Corporation Shareholders – elect people to board of directors Board of directors- elect senior management Senior Management The Shareholders Owners of the corporation Basically, there are two classifications of shareholders: ⋅ Common (residual) ⋅ Preferred Rights of the Shareholder To vote for the Board (one vote per share) can give proxy to someone Te receive dividends if declared; if the profits are distributed to the shareholders then they are called dividends To hold/sell any share registered in name To share in assets on a pro rata basis; government gets paid off first if the business is liquidated Pre-emptive right (the right to maintain percentage ownership of business) To inspect the books...
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This note was uploaded on 12/09/2010 for the course TELFER ADM 1300 taught by Professor Peterkoppel during the Spring '10 term at University of Ottawa.

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Corporations - ADM 1300 A - ⋅ Number of directors ⋅...

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