BAM 317 Business Law Essay Question #4 SID #58454.docx

BAM 317 Business Law Essay Question #4 SID #58454.docx -...

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Cheryl Cech, SID #58454 11/21/2011 BAM 317-SG Business Law Unit # 1 Question #4: Define a corporation. What are the major attributes of a corporation? What is the liability exposure of shareholders for the debts and obligations of the corporation? How does an S corporation differ from a C corporation? A corporation is an organization recognized legally to conduct business. Owners of corporations are called shareholders and the business is separate from these shareholders. Shareholders can consist of only one or several thousand people. The major attributes of corporations consist of free transferability of shares, perpetual existence, centralized management and limited liability of shareholders. 1 The first attribute, free transferability of shares means that the shares are freely transferable by shareholders by sale, assignment, pledge, or gift. Shareholders agree among themselves on the restrictions of the transfers. In the second attribute, perpetual existence refers that a corporation may exist in
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This note was uploaded on 11/21/2011 for the course BUSINESS M BAM317 taught by Professor None during the Winter '11 term at California Coast University.

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BAM 317 Business Law Essay Question #4 SID #58454.docx -...

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