Brief Exercise Essay 11 1 Fillable Form
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Name:________________ Brief Exercise 11-1 (Essay) 5 points Bonnie Decker is planning to start a business. Identify for Bonnie the advantages and disadvantages of the corporate form of business organization. Type your answer in the provided area. Please use complete sentences, proper spelling, and correct grammar. Print out this form and turn it in with the current event article and your summary of the article. Do not email your response to the teacher. All current events, internet searches, and essays must be submitted in class. Advantages Disadvantages Wiley Number
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She would have a separate legal existence. This means that her corporation acts underneath its own name, rather than the name of the stockholders. This means that the corporation may buy, own, and sell property, borrow money, and enter into legally binding contracts in its own name, sue or be sued, and pay taxes. There will be limited liability for her stockholders. This means that the corporation's losses are limited to the amount the stockholders invest. The ownership rights will be freely transferable through capital stock, with the ability to buy and sell and transfer the title of ownership. She will have the ability to acquire capital and gain investments, in large or small amounts through investors. Her company will have a continuous life; there is no set death date for her corporation, until when the company itself dies. With corporation managers, there are also professional managers, so there are employees who manage the company, rather than Bonnie managing all of the responsibilities herself. This means that the boards are held responsible, rather than Bonnie personally.The disadvantages aren't quite as pronounced as the advantages, but they are still important to note. With the corporation, there is a separation between ownership and management. This means that the management doesn't control the company, but rather just runs it for the owners. The management works for the owners, and therefore, has no real personal impact or accountability. Government regulations are also a lot higher on corporations than other forms of companies. Publicly held corporations are required to extensively disclosure of their financial affairs to the SEC through quarterly and annual reports. Additional taxes also occur for corporations, as the dividends given to stockholders are also taxed. This is known as double taxation, as the corporate level and individual dividend levels are taxed.
Transcript of Brief Exercise Essay 11 1 Fillable Form
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Name:________________ Brief Exercise 11-1 (Essay) 5 points Bonnie Decker is planning to start a business. Identify for Bonnie the advantages and disadvantages of the corporate form of business organization. Type your answer in the provided area. Please use complete sentences, proper spelling, and correct grammar. Print out this form and turn it in with the current event article and your summary of the article. Do not email your response to the teacher. All current events, internet searches, and essays must be submitted in class. Advantages Disadvantages
Wiley Number
topmostSubform[0].Page1[0].Name[1]: topmostSubform[0].Page1[0].TextField1[0]: She would have a separate legal existence. This means that her corporation acts underneath its own name, rather than the name of the stockholders. This means that the corporation may buy, own, and sell property, borrow money, and enter into legally binding contracts in its own name, sue or be sued, and pay taxes. There will be limited liability for her stockholders. This means that the corporation's losses are limited to the amount the stockholders invest. The ownership rights will be freely transferable through capital stock, with the ability to buy and sell and transfer the title of ownership. She will have the ability to acquire capital and gain investments, in large or small amounts through investors. Her company will have a continuous life; there is no set death date for her corporation, until when the company itself dies. With corporation managers, there are also professional managers, so there are employees who manage the company, rather than Bonnie managing all of the responsibilities herself. This means that the boards are held responsible, rather than Bonnie personally.topmostSubform[0].Page1[0].Name[0]: topmostSubform[0].Page1[0].TextField1[1]: The disadvantages aren't quite as pronounced as the advantages, but they are still important to note. With the corporation, there is a separation between ownership and management. This means that the management doesn't control the company, but rather just runs it for the owners. The management works for the owners, and therefore, has no real personal impact or accountability. Government regulations are also a lot higher on corporations than other forms of companies. Publicly held corporations are required to extensively disclosure of their financial affairs to the SEC through quarterly and annual reports. Additional taxes also occur for corporations, as the dividends given to stockholders are also taxed. This is known as double taxation, as the corporate level and individual dividend levels are taxed.
