LGST 2000 Study Guide - Quiz Guide: Retained Earnings, Leading Edge, E-Commerce
2 Feb 2017
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O purpose: to engage in any legal act. O engage in any act that an individual can. O ownership can change constantly without changing the existence of the corporation. O shareholder can sue the corporation or sue on behalf of the corporation. O reinvest these funds as r & d. O technology companies do this instead of paying dividends because they have to stay at the leading edge. O can be passed on to shareholders as dividends. O the money used for dividends is taxed as corporate profit. O dividends are then taxed at the shareholder level. O business in state other than home state. O formed to serve a gov"t purpose (post office) O benefit from grants and donations to help meet their expenses. O retains corporate protections but avoids corporate income taxes. O shareholders can use losses to offset income from other investments or income. O profits taxed as individual income (lower than corp)
