Добавил:
Upload Опубликованный материал нарушает ваши авторские права? Сообщите нам.
Вуз: Предмет: Файл:
1.docx
Скачиваний:
21
Добавлен:
22.03.2015
Размер:
69.84 Кб
Скачать

15. What is a corporation?

a corporation is a business that is authorized by law as a separate legal entity with its own powers, responsibilities, and obligations..

16. What is the essential feature of a corporation?

The essential feature of a corporation is its legal independence from its owners

17. Who owns a corporation?

Ownership of a corporation is represented by shares of stock also called stock or shares. The corporate owners are known as shareholders or stockholders

.18. What are the major advantages of a corporation? Limited liability is one of the major advantages of a corporation.  Being a separate legal entity, the corporation actually owns and operates the business for the benefit of the shareholders, but under their total control.

Shares of ownership are transferable.. Corporation has unlimited life. It is much easier for a corporation to increase capital to manage and expand its operations.

. 19. What is limited liability?

Limited liability: an advantage of a corporation allowing a stockholder no legal responsibility for the debts beyond the sum he or she has invested in the corporation

.20. What is the advantage of limited liability?

21. What liability do the shareholders have? Shareholders are not liable for the debts of a company they own shares in. If a business fails shareholders can lose no more than he or she has paid for the shares of stock but their personal assets – car, home, and personal bank accounts – are safe from the creditors of the business

. 22. Who can become a shareholder?  Shares of ownership are transferable. Stockholders can enter or leave a corporation at will simply by buying or selling shares of stock.

23. Why does a corporation have a continuous existence?

The corporation’s power of succession enables it to have a continuous existence. Unlike a sole proprietorship, the death of the corporate stockholders will not terminate the corporation, since their shares are passed on to their heirs. 24. Why is it much easier for a corporation to increase additional capital? 

It is much easier for a corporation to increase capital to manage and expand its operations. To raise additional funds corporation attracts new stockholders by selling its new issues of shares to the public.

25. What are the major disadvantages of a corporation? A corporation is difficult and expensive to create and organize Corporation is subject to double taxation. The shareholders do not directly manage the corporation's daily operations.

26. What does the process of creating a corporation require? This process requires higher start-up capital and the services of a lawyer to obtain a government charter.

27. What does double taxation refer to?

As a legal entity it pays a corporateincometax. Then, if the corporation distributes some of its net income to the stockholders as dividends, they are taxed again on the stockholders’ individual income tax returns.

28. What are dividends?

Dividends: payments made from the earnings of a corporation to its stockholders.

Соседние файлы в предмете [НЕСОРТИРОВАННОЕ]