Introduction/Formation of Corps Flashcards
1
Q
Corporation definition
A
Distinct legal entity that can conduct business in its own right
2
Q
How does corporation conduct business?
A
-buying/selling/holding property
-suing/being sued
-lasting forever
3
Q
Why form corp? 2 reasons
A
1) limited liability
2) promoting investment
4
Q
What is corporate law?
A
STATE laws governing STRUCTURE of corps and RIGHTS and RESPONSIBILITIES of participants
5
Q
Shareholder role
A
Investors, ultimate owners of RESIDUARY INTEREST in corporation
6
Q
Director role
A
Elected by shareholders, responsible for MAJOR DECISIONS and appointments of officers
Locus of authority
7
Q
Officer role
A
Run corporation on a daily basis
