Worksheet 33.1: Nature and Classification of Corporations

Corporations enjoy many of the same rights and privileges under state and federal law that people enjoy.

(do)

11. Most corporate enterprises in the United States can be considered:

d. close corporations

Foreign corporation

in a given state, a corporation that does business in the state without being incorporated in that state

Domestic corporation

in a given state, a corporation that is organized under the laws of that state,

Retained earnings

the portion of the corporation's profits or income that is not paid out to shareholders

1. A corporation is a legal entity:

c. created by state statute

One main disadvantage of the corporate form of business is

Double taxation of distributed income

10. There is no difference between a public corporation and a publicly held corporation.

F

One of the key advantages of the corporate form of business is

Limited liability of ownership

15. To become an S corporation, a corporation must meet specific criteria, with restriction on the of shareholders, as well as the types of that can be issued.

Number stock

Management of a close corporation often resembles that of a , but a corporation must meet the statutory requirements to remain a corporation. Often, shareholders in a close corporation the transferability of shares. If a majority shareholder misappropriates company funds, the normal remedy for the other shareholders is to have their shares to determine value and then that value.

Partnership restrict appraised recive

Today most state corporate statutes are at least partially based on the

Revised Model Business Corporation Act

The , or owners, of a corporation elect the who then hire the to run the daily operations.

Shareholders directors officers

14. A corporation automatically will be taxed under subchapter C unless it elects to become an S corporation.

T

Alien corporation

a corporation doing business in a state but organized in another country,

Professional corporation

a corporation formed by members of certain professions

Benefit corporation

a corporation formed with concern for making money but also with concern for the public good

Nonprofit corporation

a corporation formed without concern for making money

Dividends

a distribution of profits or income to shareholders,

12. Select the three names that close corporations are often called.

a. closely held corporations b. family corporations e. privately held corporations