Prosperity and American Business

Prosperity and American Business - What is a Co rpo ratio...

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What is a Corporation? A corporation is a legal entity created to run a business. There are a number of advantages of a business being a corporation: Limited liability – the assets of the owners of a corporation (stockholders, if publicly traded) are protected Longevity – the company can survive past the death of its owner
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Tax impacts Tax Advantages of Corporations : Corporate income is not subject to Social Security, Workers Compensation and Medicare taxes; and self-employment taxes Tax disadvantages Corporate earnings are taxed and then taxed again as capital gains when paid out as dividends.
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The institution most often referenced by the word "corporation" is a public or publicly traded corporation, the shares of which are traded on a public stock exchange (e.g., the New York Stock Exchange or NASDAQ in the United States) where shares of stock of corporations are bought and sold by and to the general public. Most of the largest businesses in the world are publicly traded corporations. However, the majority of corporations are said to be clos ely held , privately held or clos e corporations , meaning that no ready market exists for the trading of shares. Many such corporations are owned and managed by a small group of businesspeople or companies.
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A corporation is allowed to own property and enter contracts. It can also be sued and held liable under both civil and criminal law. Among the most frequently discussed and controversial consequences of corporate personhood in the United States is the extension of a limited subset of the same constitutional rights.
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This note was uploaded on 11/27/2011 for the course HISTORY 103 taught by Professor Livingston during the Fall '08 term at Rutgers.

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Prosperity and American Business - What is a Co rpo ratio...

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