Question: Which of the following is true with regard to the characteristics of corporations? Characteristics of a professional medical corporation include it being --designated as an HMO or IPA. 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 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 Example #6 ? Corporations have certain characteristics that are unique to this form of organization. b) *Debt/Equity Ratio = Long-term Debt / Total Equity* Owner authority and control One vote per share 2. When elderly, the customer uses savings acquired over the years. 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 3) Elect Directors Competitive: I thrive under pressure. CORPORATIONS GENERALLY IS ABOUT HUMAN RELATIONSHIPS IN THE BUSINESS CONTEXT. Personal assets of stockholders are not available to creditors or lenders seeking payment of amounts owed by the corporation. 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. How long does it take for braces to close gaps. " [Leadership] is all about influencing people," said Kirstin Lynde, founder of leadership development firm Catalyze Associates, in a Facebook Live interview. a) It is less risk than common stock but more risk than debt 5) Was made by a director or directors who otherwise were not independent 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 Government regualtions. Par. 25,000 & \$ 100,000 & \$ 0.50 \\ 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 ii) The derivative suit was developed to alleviate this problem Your email address will not be published. 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. (8) Whether the corporations are treated as independent profit centers (big one); service business. CHARACTERISTICS OF A CORPORATION 1. As a corporation is owned by stockholders and managed by employees, the sale of stock, death of a stockholder, or inability of an employee to function does not impact the continuous life of the corporation. Expert Answer. 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 Decision maker 3. a) Gross negligence is the standard for board of directors Members can assign their economic rights in the LLC. Advantage of Corporations. Ability to raise large capital amounts 2. C) Actively helping plan the long-term direction and goals for the institution D: Which of the following is true with regard to the characteristics of corpora- tions? Professional management. Select one: a. They remember their manners. Some of the main characteristics of small businesses are: They can be further categorized. F) Ensuring the institution complies with all regulations At its most basic level, what is corporations about? 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. The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management. Study online at quizlet/_4on6v. Separate taxable entity (leading to double taxation) 7. 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. Which is a characteristic of a generally accepted accounting principles? 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 Here are certain characteristics that are not representative of corporations: The stockholders of a corporation have unlimited 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 good logo is: Simple. Separate Legal Existence. Once a public corporation sells its initial offering of stock, it is not part of any subsequent transfers except as a record keeper of share ownership. Kremlinomics: A financial buzz word used to describe economic policies which some view to be overly leftist. A company with fewer than 100 employees is generally considered a small-sized business, while one with between 100 and 1,500 employees is a medium-sized business. What are the Characteristics of Corporations? Therefore, corporations may own property, enter into binding contracts, borrow money, sue and be sued, and pay taxes. Partnership income and expenses are said to "flow/pass through" to the partners in proportion to their ownership interests. (5) Common office space, address, and telephone numbers of corporate entities; The communication of thoughts, information, perceptions, and opinions among individuals is a continuous cycle in professional, personal, and business settings. For each transaction a through f, identify its impact on the accounting equation (select from 1 through 5 below). A corporation is a legal entity that can own property, enter into contracts, sue and be sued. Particularly in a public company, the stock can be easily transferred in part or total at the discretion of the stockholder. a) Partnership is not a taxpaying entity. Corporate Authority -- Directors, you are not independent if You are not independent if Amazon was founded in 1994 and is a world leader in e-commerce. Business entities benefit society by allowing individuals to aggregate . Tip. I) Ensuring and maintaining the board's independence, Red Flags of Deficiency in Governance to Watch For, A) A strong or dominant CEO "runs the show," soliciting little or no input from others and not tolerating the opposing view Identify when revenue should be recognized in the given situation. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. C) Most important is cash flow from operating activities Long before the term "influencer" was coined, young people played that social role by creating and interpreting trends. Less is more, fewer is better, and simple rules are the common mantra here. iv) Default: Member-managed a) Board of directors must recommend the amendment, which must then be approved by the holders of at least a majority of its outstanding stock Kremlinomics alludes to the communist policies of the Russian government during the . Duration of life 3. What are the Characteristics of Corporations? Transcribed image text: All of the following are . They call their parents regularly. B) In order for the board to act, it must Good people understand that others need praise. lego 41446 friends heartlake city vet clinic. bookmarked pages associated with this title. Tip. a) Presentation of the corporations financial statements fairly and accurately reflects the financial position of the company Produce goods used by other businesses or organizations to make things, type of commercial business that use mostly labor to offer intangible products to satisfy consumer needs. a) Articles of incorporation will create authorized shares traits. Did these ratios get stronger or weaker in 2016 compared to 2015? A corporation is treated as a person with most of the rights and obligations of a real person. \text{Selling and administrative expenses (45\\\% variable)}&\underline{26}\\ a. inventory 3) Accounts Receivable = amounts not yet collected from customers to whom goods have been shipped or services delivered Accounting & Financial Reporting - Bookkeeping works within following three categories a) Internal Auditor first line of defense against financial fraud a) Oversees the way senior executives are paid What is a relevant cost? No managerial skills needed from stockholders because decisions are made by the Board of Directors. Separate entity. franchise. Requirements Double taxation of dividends c. Charter d. 2) To get information from management The Statement of Partners' Capital, Next Cheerful : I develop a positive work environment. What are the 4 attributes of corporation? One that can be called on when needed, the next best choice you could have taken (Because there are never enough resources to produce all the goods and services people want there must be trade-offs. c. lead time 7 Which is characteristic of a limited liability company ( LLC )? Clever : I can juggle multiple tasks. b) Responsible for establishing the terms of any stock options executives may get as compensation Limited Liability of Stockholders. 1) Dividends 4) A code of ethics that applies to all officers, board members, and employees should be adopted and monitored for adherence by the board iii) Paid in equity + retained earnings = Total Equity, Accounting & Financial Reporting - Retained Earnings - Ratio's, i) Investors look at financial statements in different ways, such as i) Must be a quorum present B) Working with management to promote ethical, positive corporate culture People pool their money together to buy a variety of stocks. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 100,000 & 275,500 & 3.00 Who is the most powerful person in a corporation? to put money to use by buying a part of something, so that you may have profitable returns such as interest, or income. Latin for "let the buyer beware"; buyers need to know what they are purchasing, whether it has a warranty, etc. Ability to raise large amounts of capital High ability 5. i) If there is an emergency, the notice requirement can be waived, A) Directors \text{Total}&\underline{\$129}\\ Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. A corporation is treated as a "person" with most of the rights and obligations of a real person. Limited to their investment. What are the 4 attributes of corporation? Separate Legal Existence. What are 2 characteristics of a corporation? Don't blame taxes for this issue. So, the minimum grand total for forming a California corporation is $125. 1. Usually represents a very large portion of the assets of firms engaged in financing businesses 1? A corporation can sell shares to new investors, and larger entities can issue bonds to obtain a significant amount of debt financing. How much does it cost to start a California corporation? What Are The Main Characteristics Of Partnership Quizlet? Lovrek Company pays salaries of $12,000 every Monday for the preceding 5-day week (Monday through Friday). an odd degree polynomial function with real coefficients. Positive character traits are those things that draw us to other people. 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. Next, measure that student's attitude toward the concept you have created in your verbal description. \end{array} Example #5 ? 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