ACG-2021 Lecture Notes - Lecture 11: Tokyo Stock Exchange, American Cancer Society, Legal Personality
Document Summary
The corporate form of organization: an entity separate and distinct from its owners, classified by purpose. Characteristics of a corporation: characteristics that distinguish corporations from proprietorships and partnerships. Corporation acts under its own name rather than in the name of its stockholders. Corporation can obtain capital through the issuance of stock. Continuous as a going concern is not affected by the withdrawal, death, or incapacity of a stockholder, employee, or officer. Separation of ownership and management prevents owners from having an active role in managing the company. Corporations pay income taxes as a separate legal entity and in addition, stockholders pay taxes on cash dividends. Other forms of business organization: limited partnerships, limited liability partnerships (llps, limited liability companies (llcs, s corporation. The corporate form of organization: forming a corporation. Companies generally incorporate in a state whose laws are favorable to the corporate form of business. Charter indicates the amount of stock that a corporation is authorized to sell.
