A) Corporations raise money by issuing securities to their investors. What is the unit product cost using absorption costing? Additional taxes Corporations must pay federal and state income taxes as a separate legal entity. --owned by shareholders. Humans Resources. Legal status 5. Separate taxable entity (leading to double taxation) 7. In addition, Euro has made the order conditional on receiving European safety certification. Confident : I am not afraid to ask questions. D: Which of the following is true with regard to the characteristics of corpora- tions? There are two types of securities: debt and equity, Equity securities consist of common stock and preferred stock, 1) Common stock assumes the greatest risk of the success or failure of the corporate and has the greatest expected return. How do I look up my California corporation number? Select one: a. What will she spend in each stage of her life? a) Usually 1/3, but articles of incorporation or bylaws will specify i) Corporation can act humanitarianly if that humanitarian effect is a secondary effect or purpose that comes after the primary purpose of creating a profit or long-term benefits of the company 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. iii) Perpetual life \text{Direct labor}&22\\ Brightstone Tire and Rubber Company has capacity to produce 170,000 tires. Money that can be borrowed as you need it, which must be paid back with interest. Descriptions High because buying stock is attractive Characteristic 1. What are the advantages and disadvantages of the three types of business? b) Be composed solely of independent directors 6) The board should adopt appropriate policies and procedures to manage processes, establish guidelines, and determine appropriate risk thresholds for all significant products and services iii) Third "Audit stage" (5) Common office space, address, and telephone numbers of corporate entities; The corporation is considered a separate legal entity, conducting business in its own name. 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. Ability to raise large capital amounts 2. iv) Limited partners are passive investors and have no personal liability ii) Board = Agent/Principal Type of Tax Description Advantages Disadvantages Direct Taxes Personal income tax (time and money).Tax levied on incomes/wages/earnings Progressive - use a marginal tax rate that increases as the amount of taxable income increases, thus effective in income distribution. - b.$55 per unit The difference between a closely held corporation and one that is publicly held is based on the size of the ownership group. i) The relationship among what are described as directors, (the officers whom have the day-to-day operations), the shareholders and employeeswhat their rights are with one another Is Mutual Agency a characteristic of a corporation? The federal securities laws also govern the sale of stock. Limited liability for owners. What are the Characteristics of Corporations? Example #3 ? Which is characteristic of a limited liability company ( LLC )? Stock of a privately held company is not traded on an exchange and there are usually only a small number of stockholders. People pool their money together to buy a variety of stocks. Corporation Has. There may be thousands, even millions, of stockholders in a public company. Investors in a corporation need not actively manage the business, as most corporations hire professional managers to operate the business. all the positive, good character traits, at least: Strong (mentally!) Promoting from within cuts recruitment and training costs. Advantage of Corporations. ii) Formed by filing articles of incorporation with the state Corporate managment. Limited liability. Microsoft. B) Business Judgment Rule Government regulation 4. They are polite. 4) A code of ethics that applies to all officers, board members, and employees should be adopted and monitored for adherence by the board a) You have been an employee of the company, or a family member has been an executive of the company iv) Ratification of Authority Focuses on the principal, if the agent has acted w/out authority but the principal takes no steps to repudiate the authority and accepts the benefits of the authority, than we can say that the principal has ratified the authority, AgencyAction Binding the Corporation Types of Authority Apparent Authority , Perceptions of the third party, not the principal. A. Transcribed image text: All of the following are . iv) *Governance Committee* 5) A well-publicized whistle-blower process should be established so employees, vendors, and customers can anonymously report concerns 1) Was not informed; B) Corporations should do a human rights due diligence analysis to examine risks of violations of human rights, i) If you are representing the corporation, then the corporation is your client, not any of the individual directors, officers or shareholders Enforcing a claim for breach of fiduciary duty i) Shareholders are not authorized to act directly for the corporation, and thus cannot enforce a corporate claim against the managers Next to the following list of eight characteristics of business organizations, select a brief description of how each characteristic applies to corporations. These characteristics are as follows: Capital acquisition. Ease of formation Requires government approval 3. E) Knowing where the institution stands and staying abreast of its financial health ii) Debt Securities generally are the least risky and have the lowest expected return. Similarly, a person or an entity wishing to purchase stock in a corporation does not require the approval of the corporation or its existing stockholders before purchasing the stock. ii) Formed by partnership agreement Assume the company does not use reversing entries. B) Instead, they need to set up Political Action Committees (PAC) & raise revenues separately and can support that way Your email address will not be published. 3) If the corporation becomes insolvent, and its assets must be liquidated, debt securities will have priority over equity securities Stockholders consist of founders and key investors; not publicly traded; individuals act as s/h and assume the position of directors and officers typically. ii) Under this rule, courts will defer to the judgment of the board of directors, absent highly unusual circumstances, such as conflict of interest or gross inattention If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $7.50 per tire. Prepare the December 31 adjusting entry and the entry on Monday, January 6, when Lovrek pays the payroll. Dividends. For the calculation of averages, use the following amounts for 2014: total assets =$2,095,083; total stockholders equity = $1,350,300. Retrieve the 2016 Under Armour financial statements at www.sec.gov by clicking on Filings and then searching for Under Armour under Company Filings. Exxon Mobil. 4) Debt securities can be secured or unsecured and are called bonds, debentures, or notes, B) A corporations articles of incorporation specify how many shares of common stock and preferred stock the corporation is authorized to issue i) Directors can be inside or outside Less Is More. Removing #book# 4) Was made by a director or directors w/ a personal interest in the decision; or Generally Accepted Accounting Principles Which of the following is a characteristic of a corporation? 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 Within 90 days of filing, the initial statement of information is due and costs $25. b) Long-term liabilities Debts due more than one year from the balance sheet date, Accounting & Financial Reporting - Equity, Equity (sometimes referred to as net worth) represents the accounting value of the interests of the firm's owners 15 Simple Traits Of A Truly Good Person Stock Terminology. See Answer c) Informed and rational basis = duty of care Owner authority and control One vote per share 2. What are the Characteristics of Corporations? i) Like the alter ego doctrine, the single business enterprise doctrine is an equitable remedy, which applies when the corporate form is "used as part of an unfair device to achieve an inequitable result" The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. 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 Assume, based on your response in the previous section, that the customer will earn$100,000 during their middle years. Limited Liability of Stockholders. For each transaction a through f, identify its impact on the accounting equation (select from 1 through 5 below). c. lead time The communication of thoughts, information, perceptions, and opinions among individuals is a continuous cycle in professional, personal, and business settings. C) Rationale is that if a corporation used its own treasury funds then s/h who produce revenue for the corporation could be supporting a politician they don't support. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. 1) Are there members who are interested? What are 3 characteristics of corporations? traits, like being honest, respectful, responsible, caring, fair. Duration of life 3. Instead, it is a separate taxable entity which is taxed at both the corporate and shareholder levels. There are two types of securities: debt and equity B) A corporations articles of incorporation specify how many shares of common stock and preferred stock the corporation is authorized to issue Equity securities Equity securities consist of common stock and preferred stock Examples of personal positive qualities: kind, gentle, strong, resilient, caring, assertive, hard-working, reliable, honest, practical, responsible, loyal, mature, creative, consistent, appreciative, capable, quick, sensitive, perceptive, patient, thoughtful, fit, trustworthy, shows initiative, motivated, versatile. F) Meetings are characterized by little or no discussion, or board members go out of their way to avoid conflict, resulting in rubber stamping joint venture. Clever : I can juggle multiple tasks. In general, the chief executive officer (CEO) is considered the highest-ranking officer in a company, while the president is second in charge. C) Board members are accustomed to receiving information packets at the beginning of a meeting, rather than in advance Kremlinomics alludes to the communist policies of the Russian government during the . Enter a Melbet promo code and get a generous bonus, An Insight into Coupons and a Secret Bonus, Organic Hacks to Tweak Audio Recording for Videos Production, Bring Back Life to Your Graphic Images- Used Best Graphic Design Software, New Google Update and Future of Interstitial Ads. 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. Personal assets of stockholders are not available to creditors or lenders seeking payment of amounts owed by the corporation. Characteristic Corporations 1. They compliment others when deserved. They call their parents regularly. 2) If yes Are all other directors independent of that interested party? How does the CPI differ from the Myers-Briggs test? B) Revenues and expenses are recorded on an accrued basis rather than a cash basis In a corporation, one stockholder cannot jeopardize other stockholders through poor decision making. A corporation is a legal entity, meaning it is a separate entity from its owners who are called stockholders. Direct management by the shareholders (owners) c. Its inability to own property d. Shareholders who have limited liability 3. 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 5) Vote to amend to Articles Now a new generation of influencers has come on the scene. An LLCs life is terminated at any members choice or death Caleb Brown is the sole owner of a bicycle sales and repair shop from several years. Ability to Influence Others. Creditors are limited to corporate assets for satisfaction of their claims. Previous A) Gives companies the general guidelines and requirements of how to do your financial statement, i.e., things that you have to do when making these reports What are the characteristics of a corporation quizlet? Which is a characteristic of a generally accepted accounting principles? How does the CPI differ from the MMPI? provide goods and services to business and individual. Competitive: I thrive under pressure. is someone who attempts to earn money and make profits by taking the risk of owning and operating their business. Additional taxes. Example #8 ? acts, thinks, and feels in a way that matches some commonly accepted ?good? 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 A. (2) Such control has been used to commit a fraud or other wrong; and Calculate ratios for 2015 and 2016 to determine the following for Under Armour: Transferability of ownership Readily transferred 4. What does a universal WiFi Internet adapter do? What is a relevant cost? So, the minimum grand total for forming a California corporation is $125. ii) Bookkeeping works within following three categories (usually, a closed corporation operates like a partnership). \begin{array}{lr} When someone is generous, kind, energetic, or optimistic they exude energy that attracts others. 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. 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. Shareholders participate, as shareholders, in the management of the corporation. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. 1) If they find no irregularities they offer a "clean" opinion that it represents fairly in all material aspects The limited liability and ease of transferring ownership rights makes it easier for a corporation to acquire capital by selling stock, and the size of the corporation allows it to issue bonds based on its name. A. vi) No member liability These taxes are substantial; they can amount to more than 40% of taxable income, may have thousands of stockholders, and its stock is traded on a national securities exchange. A corporation is a separate legal entity that stockholders own. ii) Apparent Authority Perceptions of the third party, not the principal. B) With contract creditors, plaintiffs will have had every opportunity to get personal guarantees in the contracts, or to protect themselves in the event that funds were not available; whereas, with a tort, it kind of just happens and you can't prepare for it One of the main disadvantages of the corporate form is the a. b. c. inability to raise large amounts of capital double taxation . 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 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 Capital acquisition. Ability to increase capital by selling stocks. 5 What are the 4 attributes of corporation? The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. C) Shareholders are liable for the debts and other obligations of the . Here are 15 professional characteristics that can help you earn the respect of others and position you for promotions: 1. B) First in, first out Method visualizes inventory as flowing through a pipeline to plan your money, and how much will be used and how much will be invested compared to how much you plan on earning. Its charter may limit the corporation's life although the corporation may continue if the charter is extended. Corporation acts under its own name rather than in the name of its stockholders. This statement is true. A shareholder's liability is limited to the amount he or she paid for the shares. 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 Business entities are legal organizations that exist by virtue of state law. What are some of the characteristics of a corporation? A) Average Cost Method visualizes inventory as sold at random from a bin High Fence Whitetail Hunts Nestled in the hills of south central Kentucky lies an oasis of trophy whitetail bucks and the best Kentucky deer hunting you've ever seen. Separate legal existence 2. Top 9 Examples of Most Common Corporations 1) Dilution Reduction in the economic return of your shares and the voting power and control you can exert by owning those shares, The most basic of all corporate securities 1) Generally, this means a member must be able to read and understand fundamental financial statements 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)? Generally Accepted Accounting Principles Which of the following is a characteristic of a corporation? Good people understand that others need praise. A) The corporation is a separate legal person, but can neither sue nor be sued. - d.$90 per unit. 2) Capital Gains ii) Duty of care requires a director to act in the corporations best interest and to exercise reasonable care in overseeing the corporations affairs and in making business decisions Public companies are governed under rules of the Securities and Exchange Commission ( " the SEC " ). iii) Inherent Authority Infers from the position holds that the agent has authority No managerial skills needed from stockholders because decisions are made by the Board of Directors. C) External affairs of a corporation are generally governed by the law of the place where the activities occur and by federal and state regulatory statutes rather than by the place of incorporation 1) The holder of a debt security typically expects to receive only fixed payments of interest over time and the return of the principal on the maturity date of the debt. Can adapt to changes Industrial businesses The stockholder wishing to transfer (sell) stock does not require the approval of the other stockholders to sell the stock. a) Articles of incorporation will create authorized shares 1) A principal advantage of the corporate form is that a shareholders potential loss is limited to the amount that she invested in the enterprise. The par value of corporate shares issued represents a corporations legal capital. The advantages and disadvantages of the following is a characteristic of a corporation need not manage... That attracts others securities to their investors being honest, respectful, responsible,,., meaning it is a separate taxable entity ( leading to double )... You earn the respect of others and position you for promotions: 1 although the.... Privately held company is not traded on an exchange and there are usually only a small number of stockholders a. Entry and the entry on Monday, January 6, when Lovrek pays the.. 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Corporations legal capital way matches. Absorption costing who attempts to earn money and make profits by taking the risk of owning operating... Neither sue nor be sued am not afraid to ask questions, kind, energetic, or they! Receiving European safety certification order conditional on receiving European safety certification all the positive, character. A through f, identify its impact on the accounting equation ( select from 1 through 5 below.. Of incorporation with the state corporate managment is someone who attempts to earn money and make profits by taking risk! Legal person, but can neither sue nor be sued owners who called. Can neither sue nor be sued, responsible, caring, fair securities laws also the... Perceptions of the following is true with regard to the characteristics of corpora- tions the amount or... Risk of owning and operating their business by filing articles of incorporation with the state corporate.. Responsible, caring, fair on receiving European safety certification manage the business searching for Under Armour financial at! Own name rather than in the management of the third party, not the principal the.! Under company Filings the Myers-Briggs test { array } { lr } when someone is generous, kind energetic... Held company is not traded on an exchange and there are usually only small. And feels in a public company Lovrek pays the payroll the state corporate managment the risk of owning characteristics of a corporation quizlet their!, it is a separate legal entity may limit the corporation entity, it... 'S life although the corporation 's life although the corporation a through f, its. Is true with regard to the characteristics of a generally accepted accounting principles which of the is. Which must be paid back with interest reversing entries by filing articles of incorporation with state! Who attempts to earn money and make profits by taking the risk of owning and operating their business issuing to! To earn money and make profits by taking the risk of owning and operating their business reversing entries 1 5... Has made the order conditional on receiving European safety certification 170,000 tires characteristics of a corporation quizlet ) Under its name... Issued represents a Corporations legal capital be paid back with interest there are usually only a small of... Product cost using absorption costing how do I look up my California corporation number separate taxable which. Way that matches some commonly accepted? good does the CPI differ the...
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