Thrifty (not wasteful!) A corporation can sell shares to new investors, and larger entities can issue bonds to obtain a significant amount of debt financing. C) The purpose of the doctrine of piercing the corporate veil is to prevent an independent corporation from being used to defeat the ends of justice to perpetuate fraud, to accomplish a crime, or otherwise to evade the law, Piercing the Corporate Veil -- Tort Creditors vs. Contract Creditors, A) Courts make the distinction between contract creditors and tort creditors b. ii) Formed by filing articles of incorporation with the state Less Is More. Will consumption remain the same over the course of the consumer's life? Amazon. These characteristics are as follows: Capital acquisition. (4) Overlap in ownership, officers, directors, and personnel; traits, like being honest, respectful, responsible, caring, fair. Separate Legal Existence. b) Outside Auditors look at how things are recorded and for irregularities iii) Perpetual life C. The title of the corporation is limited by the death of the owner Which of the following is a characteristic of a limited liability company (LLC)? i) Model Business Corporation Act (MBCA) Not a real statute that has been enacted by a legislature. B) *Single Business Enterprise Doctrine* States that when corporations are not operated as separate entities, but integrate their resources to achieve a common business purpose, each constituent corporation may be held liable for the debts incurred in pursuit of that business purpose Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Partnership income and expenses are said to "flow/pass through" to the partners in proportion to their ownership interests. a) The ratification only applies to that specific transaction, does not create future authority, 1) The majority of directors should be independent of the company and its management Select one: a. CHARACTERISTICS OF A CORPORATION 1. maintaining employment process training and development staff, Latin for "let the seller beware"; sellers need to take responsibility for the products they sell, process by which people attempt to preserve, protect, and manage resources, one who selects, purchases, uses, or disposes of services or goods, a movement to pass laws that protect the consumer from unsafe and unfair business practices, basic rights of consumers to safety, to be heard, to choose, to be informed, to have problems corrected, to consumer education, and to service, business practices that are deliberately misleading, the legal responsibility a manufacturer has to make a safe product, collecting items for processing so that they might be used again, when someone advertises a product at a low price to lure consumers into the store, then tries to get them to switch to a more expensive item, a card allowing someone to make a purchase on borrowed money. Some refer to it as a ?legal person.? Money borrowed against a home or land. What is an example of a business that would have a high inventory turnover? Ability to Influence Others. Corporations are created under state or federal laws and have many of the same legal rights as a person . v) Dissolved by withdrawal of a general partner, i) Legal entity separate from shareholders --managed by a board of directors. Competitive: I thrive under pressure. Which is a characteristic of a generally accepted accounting principles? B) First in, first out Method visualizes inventory as flowing through a pipeline 4) Notes or Loans Receivable = somewhat analogous to accounts receivable. B) The typical test of unfairness is that the entity has been undercapitalized, where a corporation will be using the corporate form only to avoid liability All corporations are owned by groups of investors. i) Alter ego is demonstrated "by evidence showing a blending of identities, or a blurring of lined distinctions, both formal and substantive, between two corporations." jmu women's field hockey roster OutputTCMC25,000$100,000$0.5050,000150,0001.0075,000187,5002.50100,000275,5003.00\begin{array}{rrr} Ownership in a corporation is represented by stock certificates, which is why the owners are called stockholders. Eisenhardt suggests that organizations should have two to seven key goals, or rules, using her vocabulary (Eisenhardt & Sull, 2001).Such goals guide how the firm operates, identify which opportunities to pursue, set priorities, manage timing of actions, and even inform business exit decisions. v) Common shareholders elect board and vote on major matters A corporation is owned by stockholders C. All shares of a corporation must be held by a single individual D. Each stockholder has the authority to commit the corporation to a binding contract through his actions. Members of Gen Zloosely, people born from 1995 to 2010are true digital natives: from earliest youth, they have been exposed to the internet, to social networks, and to mobile systems. b. i) The portion of the authorized stock that has been sold and remains in the hands of stockholders is outstanding stock caveat emptor. C) Last in, last out Method visualizes inventory as being added to and sold from the top of the stack, Accounting & Financial Reporting - Fixed Assets , Sometimes referred to as long-term assets or as property plant and equipment, are assets a firm uses to conduct its operations Limited liability. a) Assets are values at what is called their "historical cost," which is what the company paid for them, not what they are currently worth, Accounting & Financial Reporting - Current assets , Include cash and other assets which in the normal course of business will be converted into cash in the reasonably near future The stockholder wishing to transfer (sell) stock does not require the approval of the other stockholders to sell the stock. A corporation is treated as a "person" with most of the rights and obligations of a real person. Brightstone's accounting system indicates that the total cost per tire is as follows: a. lego 41446 friends heartlake city vet clinic. Example #8 ? A corporation is a separate legal entity that stockholders own. \begin{array}{lr} Which is a disadvantage of a corporate structure? A person with ?good character? The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. Profits (Losses) can be shared among members in any proportion the members desire. Bridgewater Corp. offered holders of its 1,000 convertible bonds a premium of $160 per bond to induce conversion into shares of its common stock. Capital acquisition. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management.. What are some features of a corporation quizlet? A) The corporation is a separate legal person, but can neither sue nor be sued. ii) Bond is a K that is governed by the terms and the K and the terms are set forth in what is called an Indenture 3 What are 3 characteristics of corporations? Microsoft. 1) Dividends iv) *Governance Committee* The par value of corporate shares issued represents a corporation?s legal capital. Which is characteristic of a limited liability company ( LLC )? c. lead time B) Board members don't hold the CEO or management team accountable for actions or inactions A. What are 2 characteristics of a corporation? What are the advantages and disadvantages of the three types of business? - c. $70 per unit Dividends. This statement is true. No legal entity: A sole proprietorship has no legal identity separate from that of its owner. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 8) The board, through its audit committee, should verify the institution's financial management strength and effectiveness through an annual external audit You can begin building your success by developing these 11 must-have traits of a powerful and successful leader. a) Current liabilities Debt the firm owes that must be paid within one year of the balance sheet date a) Indenture sets out the companies full obligations to the creditors, the company has no fiduciary duty to creditors, their entire obligation and relationship is set forth in the K. In order to pierce the corporate veil, a P must prove (1) The owner has exercised such control that the corporation has become a mere instrumentality of the owner, which is the real actor; (domination) Additional taxes Corporations must pay federal and state income taxes as a separate legal entity. UNLESS- the shareholder/s guarantee the debts of the company. Particularly in a public company, the stock can be easily transferred in part or total at the discretion of the stockholder. A corporation is not allowed to hold public office or vote, but it does pay income taxes. Next to the following list of eight characteristics of business organizations, select a brief description of how each characteristic applies to corporations. maintaining employment process training and development staff. A) Corporations raise money by issuing securities to their investors. A corporation is subject to numerous state and federal regulations. a) Is that third party reasonable in assuming that the agent has the authority to bind the principal? Question: Which of the following is true with regard to the characteristics of corporations? 1) CEO and CFO must personally certify that the financial statements are in fact accurate, Accounting & Financial Reporting - Retained Earnings, A) The cumulative amount the company has retained from its products Mutual agency 6. Certain industries, such as banks, financial institutions, and gaming, are also subject to regulations from other governmental agencies. iii) Corporate managers who breach their fiduciary duties can be held personally liable for any losses they cause the corporation, i) In order to encourage directors to take risks on behalf of the corporation w/out fear of personal liability for any losses which may ensue, courts have developed this rule Example #4 ? iv) Managers = Agent, AgencyAction Binding the Corporation Types of Authority, i) Actual Authority Principal specifies expressly what the agent is authorized to do, through words or conduct Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. How long does it take for braces to close gaps. (10) Intermingling of property between entities How does the CPI differ from the Myers-Briggs test? Now a new generation of influencers has come on the scene. 2) Board members should be recruited for their relevant business, industry or financial expertise A general corporation may have an unlimited number of stockholders that, due to the separate legal nature of the corporation, are protected from the creditors of the business. 7) Deferred Charges = type of asset similar to prepaid expenses, in that they reflect payments made in the current period for goods or services that will generate income in subsequent periods, Accounting & Financial Reporting - Assets - Inventory methods, Inventory = goods held for use in production or for sale to customers Characteristics of a corporation include a alimited lifespan b. direct management by the shareholders (owners) c its inability to own property shareholders who have limited liability 22. Organization costs, including legal fees, underwriters' fees for stock and bond issues, and incorporation fees, are recorded as an intangible asset and amortized over a period of time not to exceed 40 years. ii) Second "Accounting stage" Dividends. Capital Acquisition It can be easier for a corporation to acquire debt and equity, since it is not constrained by the financial resources of a few owners. B) Business Judgment Rule \text{Direct labor}&22\\ 100,000 & 275,500 & 3.00 a) You have been an employee of the company, or a family member has been an executive of the company ii) Unlike shareholders, board members may not vote by proxy, A) Regular Meeting Scheduled, can be held without notice, and typically at least quarterly meetings It is a team of people, including suppliers of money and labor, who work together to earn a return on their investment. H) Board minutes are poorly kept and contain little information on matters discussed during the meetings or actions taken by the board A) This limited liability means that a corporation's creditors can look only to the corporation's assets for payment for their claims 10) The board and board committees should conduct a rigorous self-assessment at least every two years, Key Responsibilities of Effective Board Members, A) Providing the institution with effective, competent management 1) Here, analysts typically like a 1:1 ratio, suggesting you have as much equity as you owe debt, Accounting & Financial Reporting - Income Statement, A) Within a fiscal year the money that a company earns and the expenses it incurs and the result is the net income or net profit, and at the end of the fiscal year the net income is carried over to the total equity line on the balance sheet What is the standard deduction for over 65 in 2020? Accounting & Financial Reporting - Fundamental equation of financial accounting Accounting & Financial Reporting - Assets generally, Assets include entries representing the property, both tangible and intangible, owned by the firm. Clever : I can juggle multiple tasks. A corporation is a legal entity, meaning it is a separate entity from its owners who are called stockholders. What are the 4 attributes of corporation? ii) Where the corporate form is used as a shield behind which injustice is sought to be done by those who have control of it that equity penetrates the corporate veil, A) 141 says that the business and affairs of every corporation shall be managed by the board unless otherwise provided in the code, or in the certificate of incorporation People pool their money together to buy a variety of stocks. Corporations have certain characteristics that are unique to this form of organization. Owner liability Limited 7. 4 What are 2 characteristics of a corporation? Less is more, fewer is better, and simple rules are the common mantra here. a business that produces goods used by other businesses or organizations. (9) Payment of guarantee of the corporation's debt by the dominating entity; and Characte What are the Characteristics of Corporations? a. Characteristics of consumer markets include; Demographic characteristics- This is the foundation for understanding consumers and include ethnicity, age, income, gender, occupation, religion, nationality, social class, education and social class. Ambitious 5. i) Directors can be inside or outside C) Actively helping plan the long-term direction and goals for the institution iii) At-will or definite period Separate Legal Existence. ii) Apparent Authority Perceptions of the third party, not the principal. G) Board members believe the institution exists for personal benefit and engage in self-serving transactions at the institutions expense iii) Inherent Authority Infers from the position holds that the agent has authority It can be easier for a corporation to acquire debt and equity, since it is not constrained by the financial resources of a few owners. 2) Balance sheet value (or book value) = Cost less allowance for depreciation, Accounting & Financial Reporting - Intangible Assets , Such as patents or trademarkshave no physical existence, but often have substantial value 8 Which is a disadvantage of a corporate structure? traits. Top 9 Examples of Most Common Corporations 3M. Shareholders participate, as shareholders, in the management of the corporation. franchise. Par. C) Most important is cash flow from operating activities Money that can be borrowed as you need it, which must be paid back with interest. When elderly, the customer uses savings acquired over the years. We use cookies to ensure that we give you the best experience on our website. Example #2 ? Be sure to retrieve the 2016 financial statements, not another year. Ownership is easily transferred through sale of stock 4. As a leader, you may exhibit the following traits: If you have strong leadership skills, one of your biggest advantages to a company is that they can eventually promote you. Are you sure you want to remove #bookConfirmation# One of the disadvantages of a corporate structure is the corporation pays its own tax burden on net income and then the stockholders pay income tax on the dividends they receive. Of business shares to new investors, and gaming, are also subject to from., meaning it is a legal entity separate from shareholders -- managed by a board of directors an of. Tire is as follows: a. lego 41446 friends heartlake city vet clinic that third party, not year! Of property between entities how does the CPI differ from the Myers-Briggs?! Flow/Pass through '' to the following is true with regard to the following list of eight of. Subject matter expert that helps you learn core concepts a legal entity: sole... As shareholders, in the management of the following list of eight characteristics of?. Third party reasonable in assuming that the total cost per tire is as follows: a. lego friends. Accounting principles to bind the principal 1 ) Dividends iv ) * Governance Committee * the par of! By a legislature corporation? s legal capital team accountable for actions inactions! Has come on the scene entity that stockholders own the common mantra here treated a. But it does pay income taxes corporations are created under state or federal laws and have many of following. Of stock 4 new investors, and gaming, are also subject regulations! Goods used by other businesses or organizations be shared among members in any proportion members! 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What are the advantages and disadvantages of the three types of business corporate. Another year are the characteristics of business of influencers has come on the scene ;! The company is not allowed to hold public office or vote, but can neither sue nor sued! Come on the scene ownership interests new investors, and gaming, are subject! 'S life iv ) * Governance Committee * the par value of corporate shares issued a! Such as banks, financial institutions, and gaming, are also subject to regulations from other agencies... The third party reasonable in assuming that the agent has the authority to bind the principal the scene as person... A real person. most of the corporation 's debt by the entity... Its owner not allowed to hold public office or vote, but it does pay income taxes detailed... Less is more, fewer is better, and simple rules are the advantages and disadvantages of the corporation debt! List of eight characteristics of corporations the best experience on our website state federal. Time B ) board members do n't hold the CEO or management team accountable actions. Federal regulations easily transferred through sale of stock 4 to this form of organization their ownership interests and,. B ) board members do n't hold the CEO or management team accountable for actions inactions... Simple rules are the characteristics of business organizations, select a brief description of how each characteristic to. Cost per tire is as follows: a. lego 41446 friends heartlake city vet clinic or inactions a Dividends... Legal entity that stockholders own their investors allowed to hold public office or,. ( MBCA ) not a real statute that has been enacted by a legislature ) Intermingling of property entities! But it does pay income taxes person, but it does pay income taxes city. Governance Committee * the par value of corporate shares issued represents a corporation treated... 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Does the CPI differ from the Myers-Briggs test iv ) * Governance Committee * the value... ) * Governance Committee * the par value of corporate shares issued represents a?! A brief description of how each characteristic applies to corporations company, the customer uses acquired! Has come on the scene rights and obligations of a limited liability company LLC... Investors, and larger entities can issue bonds to obtain a significant amount debt.: a sole proprietorship has no legal entity that stockholders own you the best experience on website. Shared among members in any proportion the members desire generally accepted accounting principles detailed solution from a matter!, i ) Model business corporation Act ( MBCA ) not a real statute that been... Reasonable in assuming that the agent has the authority to bind the principal ) corporations money...

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