2 - regulations Incorporators Organize the corporation Pay...

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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 Pay...

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