MGT 210 Lecture Notes - Lecture 11: Stock Split, Media General, Treasury Stock
Document Summary
Corporation- has the rights and privileges of a person- must abide by law and pay taxes. Separate legal existence- corporation acts under own name rather than name of stockholders". Limited liability- creditors can only get access to shareholder assets under a claim. Transferable ownership rights- ownership is held in shares of capital stock. Ability to acquire capital- easy through the issuance of stock. Continuous life- life is stated in its charter, can continue living forever if successful. Corporation management- board of directors (managers) are elected by stockholders. Government regulations- the bigger you are, the more regulation you are going to have. Additional taxes- corporations pay taxes on profits, shareholders pay taxes on dividends. A corporation is formed by a grant of state charter. Describes name and purpose of corporation, types and number of shares authorized to be issued, names of individuals that formed company, and number of shares they agreed to purchase.
