17 terms

Chapter 6

Business owned by a group of people, but act like a single person.
Certificate to start a corporation
Stockholders, directors, officers.
3 key parts in a corporation
owners of the corporation
1. transfer ownership to others. 2. vote for members of the ruling body. 3. Receive profit. 4. buy new shares of stock in proportion to one's present investment.
What are the stockholders rights?
Ruling body of the corporation
1. They are elected by stockholders. 2. They develop plans and policies to guide the corporation. 3. Successful-deal with policy issues. 4. Unsuccessful- they will step in and take control.
What are the directors rights?
Top executives who are hired to manage the business
President, Secretary, treasurer, Chief Executive Officer (CEO), and Chief Financial Officer (CFO)
What are the officer members?
True or False: People who hold few or no shares are occasionally elected for the board because they have valuable knowledge that is needed by the board of directors in making sound decisions.
Investing in Business
What is called when they have to come up with the profits of every partner?
Applied to the shares of ownership of a corporation
What is capital stock?
Written authorization to vote in behalf of a person signing the proxy.
Their are meetings that everyone needs to attend, but If you can't attend you must present a proxy. What is a proxy?
one that does not offer it's shares of stock for public sales.
Definition of Close Corporation
one that offers it's shares of stock for public sale.
Definition of Open Corporation
1.Available sources of capital. 2. Limited liability of stockholders. 3. Permanency of existence. 4. Ease in transferring ownership.
Name 2 advantages of Corporations
1. Taxation. 2. Government regulations and reports. 3. Stockholders records. 4. Charter restrictions.
Name 2 disadvantages of Corporations