ECON 2720 Study Guide - Final Guide: Legal Personality, Intangible Asset, Relate

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goldferret374

26 Jun 2016

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Review sheet 2 (1) discuss, in detail, the characteristics of a corporation. A corporation is a legal entity, meaning it is a separate entity from its owners who are called stockholders. A corporation is not allowed to hold public office or vote, but it does pay income taxes. It may be established as a profit making or nonprofit organization and may be publicly or privately held. The stock of a public company is traded on a stock exchange. There may be thousands, even millions, of stockholders in a public company. Once the approval is received, the corporation must develop its bylaws. Organization costs, including legal fees, underwriters" fees for stock and bond issues, and incorporation fees, are recorded as an intangible asset and amortized over a period of time not to exceed 40 years. Ownership in a corporation is represented by stock certificates, which is why the owners are called stockholders.

Related Questions

QUESTION 8

Title VII of the Civil Rights Act prevents discrimination in:

	a.	hiring.
	b.	demotion.
	c.	fringe benefits.
	d.	All of the above are covered by the Civil Rights Act.

3.572 points

QUESTION 9

Which of the following is not a method for forming a partnership?

	a.	by transfer
	b.	by estoppel
	c.	by implication
	d.	by agreement

3.572 points

QUESTION 10

Which of the following job interview questions would be a violation of Title VII?

	a.	Why did you leave your previous employment?
	b.	Do you have reliable child-care arrangements?
	c.	Would you be able to travel two days per week?
	d.	None of the above is a violation.

3.572 points

QUESTION 11

In which of the following forms of doing business does the death of one of the owners cause dissolution?

	a.	nonprofit corporation
	b.	closely-held corporation
	c.	partnership
	d.	S Corporation
	e.	C Corporation

3.572 points

QUESTION 12

The Family and Medical Leave Act:

	a.	applies to companies with 20 or more employees.
	b.	requires applicable companies to provide 12 weeks of unpaid leave for family medical reasons.
	c.	allows an employee to take time off to care for a spouse, child, parent or parent-in-law.
	d.	All of the above are true for the FMLA.

3.572 points

QUESTION 13

Dissolution:

	a.	is the same as termination.
	b.	can result from a limited partner leaving the partnership.
	c.	can result from the death of a partner.
	d.	all of the above

3.572 points

QUESTION 14

A partnership is a:

	a.	tax reporting entity.
	b.	tax reporting and tax paying entity.
	c.	tax paying entity.
	d.	neither a tax reporting nor a tax paying entity.

3.572 points

QUESTION 15

A Subchapter S or S Corporation is:

	a.	a special class of close corporation under the MBCA.
	b.	an IRS tax treatment option for corporations owned by a limited number of shareholders.
	c.	a not-for-profit corporation.
	d.	none of the above

3.572 points

QUESTION 16

Seniority systems:

	a.	were outlawed under Title VII.
	b.	are violations of the Age Discrimination Act.
	c.	can be valid if they are not used to perpetuate past discrimination.
	d.	none of the above

3.572 points

QUESTION 17

A corporation is said to have double taxation. What is meant by this statement?

	a.	The corporation pays double the tax rate of individuals.
	b.	The corporation pays taxes on its income and its shareholders pay taxes on their dividends from the corporation.
	c.	both a and b
	d.	none of the above

turquoisedeer344

As a general rule, cities are non-profit organizations and elected officials hire managers to operate the various departments which provide services (e.g., trash collection, street repair, etc.). Suppose cities of all sizes across your state/province/region become profit-seeking corporations. They will issue stock, the stock will be traded on a national exchange (e.g., NYSE), they will have a Board of Directors which will appoint all city officials. Any economic agent with the means may purchase stock. As usual, shareholders will elect members of the Board. Furthermore, the city will no longer be permitted to tax any economic agent (i.e., household, consumer, or business). Assume all stockholders have a share of ownership in the city.

a) Will the new system increase or decrease incidents of Moral Hazard by city officials/managers compared to the old system? Explain your answer. Note: First you must clearly state a given city manager's objective. Then compare the incentives this manager faces under the two systems.

b) List and discuss 2 externalities (positive or negative) that would result from having for-profit cities. Clearly, state who the recipients are of the externalities as well as the source(s). Remember to choose and clearly state a primary activity.

(Some cities (e.g., Cincinnati, Ohio) have a City Manager who runs the day-to-day operations. The elected officials appoint this individual and s/he has no policy-making authority. It is simply an administrative

champagnerat497

TRUE OR FALSE

1. _____ Under the feudal system of land ownership, the responsibility for providing services, determining land use, etc., was held by the king.

2. _____ Government rights limit private rights in real property by the use of appropriation.

3. _____ When real property is taken by means of eminent domain, the government has to pay the landowner fair market value.

4. _____ Railroads have the right to condemn private property for public use.

5. _____ A family had a lion as a pet at their home outside the city. When the area became incorporated, the city made him get rid of the lion by their use of police power.

6. _____ A government may acquire ownership of privately held land by patent.

7. _____ If title to real property is said to be fee simple, it can NOT be alienated.

8. _____ A fee simple estate in real property may not be transferred with a bill of sale.

9. _____ The greatest estate in real property is a fee simple estate.

10. _____ The bundle of rights includes the right of escheat.

11. _____ An encumbrance affects the loan to value ratio.

12. _____ An easement may be created by a written document granting the right to another.

13. _____ An easement may be removed from county records by a quit claim deed signed by the owner of the easement.

14. _____ When a parcel of real property is sold in foreclosure, the easement rights transfer with title.

15. _____ An easement appurtenant passes with the title to the dominant estate.

16. _____ A private road on Donâs property has often been used by fishermen as a walkway to the lake. If Don wishes to break the fishermenâs claim to an easement by prescription, while still allowing the use, he must give notice of his consent to their use of the property.

17. _____ The legal right of a utility company to maintain power lines along the back of a lot is called adverse possession.

18. _____ The best way to determine whether a property has an encroachment is to search the title.

19. _____ A property owner lived in an area newly zoned for business but his deed contains a restriction against commercial usage. In this case the zoning laws would prevail.

20. _____ The type of lien used by someone who does work or supplies materials for a home and has not been paid is called a mechanicâs lien.

ECON 2720 Study Guide - Final Guide: Legal Personality, Intangible Asset, Relate

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