corporations

Question 1

define corporation

Answer 1

a business owned by a group of people BUT it is authorized to act as though it were a single person, separate from its owners

Question 2

articles of incorporation or charter

Answer 2

Inc. -Incorporation
Co. Corporated
Ltd. -Limited

Question 3

3 key types of people in corporations

Answer 3

1. Stock holders/ Share holders
2. Board of Directors
3. Officers

Question 4

Share holders (4)

Answer 4

buy and sell WITHOUT changing business operations

have limited liability

do not run the corporation on a day-to-day basis

vote in board of directos

Question 5

Board of Directors (3)

(doesn’t hv to be shareholder….board members from everywhere to not make bias decisions)

(sometimes gives and sometimes doesn’t give Stephens)

Answer 5

Ruling body of corporation

for major decisions that affect the business

Hire officers/ managers

Question 6

officers (3)

Answer 6

managers of business

run day-to-day business

hire/fire employees

Question 7

define Private/ close corporation

Answer 7

shares held by a few investors or employees

EX: BSI

Question 8

Public corporation

(show financial statements to the public)

Answer 8

sell shares to anyone

EX: BEL

Question 9

Dividends (3)

100,000 NI
- 80,000 Dividends
______________________
$20,000 Retained Earnings (CR)

Answer 9

profit paid to share holders

Doesn’t hv to be every yr

cash or stock dividends (Managers of the board decide the amount)