2 - regulations • Incorporators Organize the corporation...

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Stockholders’ Equity Characteristics of a Corporation Separate Legal Entity Corporation distinct from owners; artificial person Continuous Life/Transfer of Ownership: Company continues to exist & operate regardless of ownership changes Limited Liability Stockholders are not personally liable for corporate debts Separation of Ownership & Management: Stockholders elect Board of Directors who, in turn, appoint officers Corporate Taxation Corporations are taxed on their earnings; dividends distributed to owners are also taxed Government Regulation Corporate activities are monitored by government
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Unformatted text preview: regulations • Incorporators Organize the corporation Pay fees Sign charter File documents with the state Agree to bylaws Stockholders’ Rights • Vote at stockholder meetings • Receive dividends • Receive share if corporation liquidates • Maintain proportionate ownership Preemptive right Parts of Stockholders’ Equity • Paid-in capital Represents amounts contributed by stockholders Include stock accounts • Retained earnings Amounts earned and kept by the corporation...
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2 - regulations • Incorporators Organize the corporation...

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