Accounting & Financial Reporting - Bookkeeping works within following three categories a) Internal Auditor first line of defense against financial fraud What are the Characteristics of Corporations? Prepare a differential analysis dated January 21 on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors. Stakeholder theory of the modern corporation. An entrepreneur is someone who attempts to earn money and make profits by taking the risk of owning and operating their business. 2014 figures for the company are as follows (in thousands): Accounts receivable (net) $279,835; Inventories$536,714; Accounts payable $210,432. iii) At-will or definite period Separate taxable entity (leading to double taxation) 7. Limited Liability of Stockholders. 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. iii) Perpetual life B) Instead, they need to set up Political Action Committees (PAC) & raise revenues separately and can support that way (3) Intermingling of funds; Corporate managment. A) Corporations raise money by issuing securities to their investors. Capital acquisition. 2) If yes Are all other directors independent of that interested party? One way to view a business entity is as a separate person. 1) What are the voting rights that s/s are able to exercise? 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. Brightstone presently produces and sells 130,000 tires for the North American market at a price of $175 per tire. 3. Who is the most powerful person in a corporation? Consistency. a) Usually 1/3, but articles of incorporation or bylaws will specify a) Current liabilities Debt the firm owes that must be paid within one year of the balance sheet date (2) Such control has been used to commit a fraud or other wrong; and Characteristics of Entrepreneurs 1.Risk taker 2. (Hint: The consumer will attempt to maintain constant consumption for her final two life periods as long as she can consume at least $20,000 in each period after she reaches middle age.). iii) Third "Audit stage" ii) Underlying rationale is that you want to match up the cost and revenue so you can match up how profitable or well the company is doing, Accounting & Financial Reporting - Statement of Cash Flow, A) Something to reconcile the fact that on the one hand you're using the accrual method to reconcile costs and on the other hand you need to know where you are in terms of cash flow 50,000 & 150,000 & 1.00 \\ i) Model Business Corporation Act (MBCA) Not a real statute that has been enacted by a legislature. The board, in turn, formulates operating policies and also selects officers to execute policy and to perform daily management functions. to put money to use by buying a part of something, so that you may have profitable returns such as interest, or income. Watch on Forbes: 1. c) At least three of them have to be financially literate 1. Ease of formation Requires government approval 3. ii) A corporation's board of directors generally may sell authorized but unissued stock on whatever terms it decides reasonable. Stock of a privately held company is not traded on an exchange and there are usually only a small number of stockholders. By setting up a PAC only those who support the politician can give money ii) When looking to who can speak on behalf of the corporation you look to the chain of command, California ApproachPseudo Foreign Affairs (to internal affairs), i) California holds the view that if the most important interest in the company are operated in Californiaif 50 percent of the company is run in the statethen California state law will apply, i) Association of two or more people Tax status of income Previous question Next question A corporation is a legal entity, meaning it is a separate entity from its owners who are called stockholders. A truly good person will compliment when deserved and offer constructive criticism when warranted. develop products for distribution from raw goods, change raw goods into a more finished form, provide service to consumers and other businesses, provide goods and services to business and individual, refusal to buy a company's services or product. Advantage of Corporations. Nearly every large US company has an intelligence office of some kind. Expert Answer. What does a universal WiFi Internet adapter do? i) Accrual method says that what we want to do is determine when you are entitled to receive revenue and when we want to record that during that period Characteristics of a corporation include a alimited lifespan b. direct management by the shareholders (owners) c its inability to own property shareholders who have limited liability 22. ii) Formed by filing articles of incorporation with the state ii) Board = Agent/Principal G) Attending meetings and actively participating in board discussions 10) The board and board committees should conduct a rigorous self-assessment at least every two years, Key Responsibilities of Effective Board Members, A) Providing the institution with effective, competent management maintaining employment process training and development staff. This statement is true. b) Be composed solely of independent directors The companys inventory turnover and days inventory outstanding (DIO); accounts receivable turnover and days sales outstanding (DSO), accounts payable turnover and days payable outstanding (DPO), and the number of days in its cash conversion cycle. Thrifty (not wasteful!) Which one of the following is not a characteristic of a corporation? Assume that the real interest rate, predicted inflation, and inflation are all equal to zero. What is a relevant cost? They call their parents regularly. 3M. Which is a disadvantage of a corporate structure? Government regualtions. A. \text { Output } & \text { TC } & \text { MC } \\ Terms in this set (8) A person with ?good character? Ambitious 5. What are the characteristics of a corporation quizlet? B) Working with management to promote ethical, positive corporate culture c) Informed and rational basis = duty of care An investment expert makes all of the buy and sell decisions, as source of supply, support, or aid. A. shareholders who have limited liability B. shareholders who are mutual agents C. its inability to own property D. direct management by the shareholders (owners) Characteristics of a corporation . Example #8 ? Separation of owners and entity (no mutual agency). Ownership and management are vested in the same person. How to Market Your Business with Webinars? Can adapt to changes Industrial businesses A good logo is: Simple. Profits (Losses) can be shared among members in any proportion the members desire. Calculate ratios for 2015 and 2016 to determine the following for Under Armour: Business Law in Canada, 11e (Yates) Chapter 11 Corporations. 1. Two key characteristics of a C-Corporation are: it provides limited liability to the owners/shareholders; and, unlike an S-Corp, it is not a flow-through entity. So let?s get into a list of character traits ? - d.$90 per unit. Things you have to give up when you make a particular choice. Once the approval is received, the corporation must develop its bylaws. i) If there is an emergency, the notice requirement can be waived, A) Directors 1) Dividends These characteristics are noted below. Determine another student's ideal beliefs and the significance of those beliefs for a spa. - c. $70 per unit ". How much does it cost to start a California corporation? \text{Total}&\underline{\$129}\\ In general, the chief executive officer (CEO) is considered the highest-ranking officer in a company, while the president is second in charge. Your email address will not be published. a) It is less risk than common stock but more risk than debt Limited liability 5. Capital acquisition. Descriptions High because buying stock is attractive Characteristic 1. If you already know that you need a logo for your business, you can use our logo maker to help you create a strong one. 3) Ability to have influence as to who is put on the ballet as a nominee C) Actively helping plan the long-term direction and goals for the institution What are the advantages and disadvantages of the three types of business? B) Business Judgment Rule 3. Separation of owners and entity (no mutual agency). G) Board members believe the institution exists for personal benefit and engage in self-serving transactions at the institutions expense Withdrawal or death of an owner does not cause termination. i) Shareholders are not authorized to act directly for the corporation, and thus cannot enforce a corporate claim against the managers. The stock of a public company is traded on a stock exchange. These 5 qualities make a logo instantly identifiable, and ensure that when customers look at it, they'll connect with your brand. Dividends. Advantage of Corporations. So, the minimum grand total for forming a California corporation is $125. 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. Separate Legal Existence In some states, stockholders are called shareholders. Is Mutual Agency a characteristic of a corporation? How long does it take for braces to close gaps. Who is the most powerful person in a corporation? C) Shareholders are liable for the debts and other obligations of the . v) Manager-managed: managers act for LLC; members vote on major matters a) Appears on the right side of the balance sheet b/c it may be considered as the amount that is "owed" to the stockholders, Accounting & Financial Reporting - Financial statements are produced through a 3-stage process, i) First "Recording and controls" stage Owner authority and control One vote per share 2. - a. vii) Majority vote by directors and shareholders, Characteristics of a Limited Liability Company, i) Legal entity distinct from members Instead, it is a separate taxable entity which is taxed at both the corporate and shareholder levels. a) Is that third party reasonable in assuming that the agent has the authority to bind the principal? Often, a bullwhip type of effect occurs. A corporation is not allowed to hold public office or vote, but it does pay income taxes. Members can assign their economic rights in the LLC. 6) Prepaid Expenses = payments a firm has made in advance for services it has not yet received 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 When elderly, the customer uses savings acquired over the years. Ability to raise large amounts of capital High ability 5. CHARACTERISTICS OF A CORPORATION 1. 5) Vote to amend to Articles 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 " [Leadership] is all about influencing people," said Kirstin Lynde, founder of leadership development firm Catalyze Associates, in a Facebook Live interview. 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. Professional management b. ability of profit-making organizations to compete with businesses in other countries effectiveness making the right decisions about what products or services to offer customers and how to produce and deliver them efficiency producing needed goods or services quickly and at a low cost domestic goods products made by firms in the United States Here are certain characteristics that are not representative of corporations: The stockholders of a corporation have unlimited liability. Will consumption remain the same over the course of the consumer's life? \text{Factory overhead (60\\\% variable)}&25\\ 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 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. \end{array} (d) You borrow money in August from RBC Financial Group. Within 90 days of filing, the initial statement of information is due and costs $25. Therefore, corporations may own property, enter into binding contracts, borrow money, sue and be sued, and pay taxes. 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 Pay income taxes At-will or definite period separate taxable entity ( no mutual agency.... 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