Introduction to Business - Posted

Employees corporations corporations advantages

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Unformatted text preview: (consider them owner for stakeholder analysis). Employees Corporations Corporations ADVANTAGES Limited liability Limited Greater access to $ Greater – Can sell shares of Can ownership to others ownership Separation of ownership Separation from management from Ease of ownership Ease transfer transfer DISADVANTAGES More costly to form Must keep accurate Must records records Potential for conflict with Potential Board of Directors Board Taxed TWICE if Taxed dividends given dividends Separation of ownership Separation from management from 3 Basic Types of Corporations of Private or Closely Held: Not traded on any stock exchange; stock held by a few exchange; Some are big: Hallmark, Bose, MasterCard and Mars Many are relatively small; a single individual can Many incorporate and form a corporation. incorporate Don’t have to share financials with outsiders Public: Shares traded on stock exchanges, widely held by many people and institutions held Financial statements are open to the public Financial Non-Profit: Performs public service, special tax considerations Private Enterprise System Private What is another name for the...
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