Advantages
does a company have hard or easy access to capital?
easy access to capital
What is one major disadvantage of forming a corporation?
It costs a lot of money and takes time to set up and run.
What is a corporation?
A legal entity owned by shareholders that conducts business.
Are your personal assets protected in a Corporation?
yes
Why might corporations face double taxation?
They pay taxes on their profits, and shareholders also pay taxes on the money they get from the company.
Who owns a corporation?
Shareholders or stockholders.
why does a corporation have perpetual existence?
Because its stays existing even when the owners change because a shareholders in the stock
What is a potential problem with the decision-making process in large corporations?
It can be slow and complicated.
What is the role of a CEO in a corporation?
The Chief Executive Officer manages the overall operations and makes major corporate decisions.
whats does limited liability mean in a Corporation?
when shareholders in a company have full responsibility for debts
How can a corporation's size become a disadvantage?
Big companies can be less flexible and slow to change.
What is the purpose of a business plan for a corporation?
To outline the company's goals, strategies, and how it plans to make money.
why is transfer of ownership easier in a Corporation?
Because the ownership is divided with shares of stock?
What is a disadvantage related to corporate transparency?
They have to share a lot of financial information, which can help competitors.
What does it mean if a corporation is "publicly traded"?
Its shares are bought and sold on stock exchanges.