Chapter 11 - Corporate Form of an Organization - have...

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Corporate Form of an Organization - have rights and privilegas - can be classified by purpose and by ownership - can be organized for purpose of making a profit or can be non profit, educational, charitable, medical - a publicly held corporation may have thousands of stockholders and is traded on NYSE, ect - private corporation usually has a few stockholders and does not offer stocks to general public. - Corporations are separate legal entities distinct form its owners, pays tax as separate entity, sell property, borrow money, enter contracts under its own name - Creditors have no legal claim on personal assets of stockholders unless fraud occurs - Easy to transfer ownership due because it is held in shares of capital stock - Corporation can obtain capital by issuing stock - CEO has responsibility for managing business. o Chief accounting officer is the controller, responsible for maintaining accounting records, maintaining adequate internal controls and prepare F, tax returns, internal reports o Treasuerer is responsible for corporaptions funds and mainting companys cash position - public companies must disclose financial statements to se - owners of partner and proprietorships report their earnings on personal income tax returns, individual then payes taxes on this amount - corporations must pay fed and state income tax as separate legal entity. - Corporations are taxed at individual and corporate level. Forming a corporation - formed by grant of a state charter, which is a document that has the name and purpose of corporation, the types and amount of stock that it can issue, names of indivuals who made it, and shares individuals agree to purchase - corporation then establishes bylaws, which establish internal rules and procedures for corporation affairs - also need a liscence from each state business is done. Stockholder Rights
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This note was uploaded on 12/14/2011 for the course ACCOUNTING 100 taught by Professor 1 during the Fall '11 term at Wisconsin.

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Chapter 11 - Corporate Form of an Organization - have...

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