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What are the elements of every corporation?

The Basic Elements of Corporations: Shareholders, Directors and Officers. Corporations are two-level structures. They feature a passive ownership level (the shareholders) and an active management level (the officers and directors).

What is the purpose of a corporation?

The purpose of a corporation is to conduct a lawful, ethical, profitable and sustainable business in order to create value over the long-term, which requires consideration of the stakeholders that are critical to its success (shareholders, employees, customers, suppliers, creditors and communities), as determined by …

What is the maximum term of a corporation?

50 years

How long is the life of corporation?

40 to 50 years

How long does a corporation last?

What is the term of corporation?

This means that a corporation shall have unlimited life unless its articles of incorporation provides for a specific period of existence, in which case, its life can only be extended through an amendment of the articles of incorporation. …

Who is liable in a corporation?

A corporation is an incorporated entity designed to limit the liability of its owners (called shareholders). Generally, shareholders are not personally liable for the debts of the corporation. Creditors can only collect on their debts by going after the assets of the corporation.

How does a corporation protect its owners?

Limited Personal Liability. One of the main advantages of incorporating is that the owners’ personal assets are protected from creditors of the corporation. Because only corporate assets need be used to pay business debts, you stand to lose only the money that you’ve invested in the corporation.

Who gets the profits in a corporation?

Profits are placed in the corporation’s retained earnings account, but the corporation is not required to distribute those profits to stockholders. The decision to distribute profits is made by the corporation’s board of directors.

What is the major difference between a corporation and other kinds of businesses?

28 Cards in this Set

What is the advantage of a sole proprietorship? It is the least regulated form of business organization
What is the major difference between a corporation and other kinds of businesses? A corporation has a separate entity apart from that of the owners and workers

Who makes the most important decisions in a corporation?

Directors. The board of directors sets policy for the corporation and makes major financial decisions.

What are the key differences among proprietorships partnerships and corporations?

A sole proprietorship is where the single owner operates the business. A partnership is similar, however, it is owned by two or more individuals. A corporation is a legal entity separate from the owners of the business. There are a number of factors to consider before deciding which route to take.