BMGT 220 Chapter Notes - Chapter 11: Double Taxation, Preferred Stock, Dividend

60 views9 pages

Document Summary

Corporation: a legal entity, distinct and separate from the individuals who create and operate it. It may incur liabilities, enter into contracts, and sell shares of ownership. Stock: shares of ownership that a corporation may sell. Stock gives corporations the ability to raise large amounts of capital. Stockholders/shareholders: own the stock of the corporation, buy and sell stock without affecting the corporation"s operations or continued existence. Public corporations: shares of stock are traded in public markets. Private/non-public corporations: shares are not traded publically and are usually owned by a small group of investors. Limited liability: stockholders of a corporation have this, the creditors usually may not go beyond the assets of a corporation to satisfy their claims. A financial loss that a stockholder may suffer is limited to the amount invested. Board of directors: meets periodically to establish corporate policies. Dividends: corporate income that is distributed to stockholders which has already been taxed.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents