Worksheet 33.1: Nature and Classification of Corporations
One of the key advantages of the corporate form of business is
Limited liability of ownership
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
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
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