Week 5 Paper - T he characteristics of a corporation have...

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The characteristics of a corporation have eight parts that makes up a corporation. Here are the seven characteristics of a corporation: separate legal existence, limited liability of stockholders, transferable ownership rights, and ability to acquire capital, continuous life, corporation management, government regulations, and additional taxes. There is another type of characteristic which is called S corporation. I am going to explain each characteristic one by one. The first characteristic of a corporation is separate legal existence. As an entity separate and distinct from its owners, the corporation acts under its own name rather than in the name of its stockholders. Also in contrast to a partnership to a partnership, in which the acts of the owners (partners) bind the partnership, the acts of the owner (stockholders) do not bind the corporation unless such owners are agents of the corporation (Kimmel, The second characteristic of a corporation is limited liability of stockholders. Since a corporation is a separate legal entity, creditors ordinarily have recourse only to corporate assets to satisfy their claims. In the event of a bankruptcy of your corporation, the stockholders losses are generally limited to the amount of capital they have invested in the The third characteristic of a corporation is transferable ownership rights.
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This note was uploaded on 03/28/2011 for the course ACCT 349 taught by Professor Goyal during the Spring '09 term at University of Phoenix.

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Week 5 Paper - T he characteristics of a corporation have...

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