Corporate Structure
Elect the board of directors in a corporation
What is Stockholders?
True or False – Board members are always chosen from within the corporation.
What is False
What "limited liability" mean for stockholders
What is their personal assets are protected if the corporation faces legal issues
Double taxation
What is corporations pay taxes on profits, and stockholders pay taxes on dividends
Perpetual life for a corporation
What is continues even if owners leave or die
The main role of the board of directors
What is to set goals and strategies for the corporation
Difference between board members in small vs. large corporations
In small corporations, stockholders are usually the board members, in large corporations, top executives are elected
Type of offering allows corporations to raise capital by selling stock
What is Initial Public Offering (IPO)
Reasons why forming a corporation is expensive
What is legal fees, paperwork, state costs
stockholder sell their shares through ______.
What is a broker
Two key corporate officers
What is Officers, the Chairperson of the Board, President, Executive VP, Treasurer, and Corporate Secretary (Any two are acceptable)
Appoints corporate officers
What is Board of Directs
corporations attract more skilled workers than partnerships or sole proprietorships by ________.
What is higher salaries, better benefits, employee advancement opportunities
True or False - corporations have less secrecy
What is True
corporations struggle in competitive markets with _______.
what is seeing their public financial reports
In larger corporations, ____ typically serves on the board of directors
What is Top Level Managers (ex.President).
Primary decision-making responsibility of the board of directors
What is approving major business decisions, mergers, acquisitions, and setting company policies
The ability to transfer ownership benefit corporations
What is stocks can be sold quickly without disrupting business operations
Corporations have strict government rules
What is meeting legal requirements to operate and sell stock
Corporations take longer to make decisions
What is more people in the decision making process
Primary difference between a corporation’s board of directors and corporate officers
What is board of directors sets goals and policies, while corporate officers execute the plans and manage operations.
stockholders exercise their control over a corporation by__________.
What is electing the board of directors and voting on key corporate decisions
One financial advantage of a corporation over sole proprietorships and partnerships
What is by selling stocks and getting loans
problem that large corporations face within the company
What is internal conflicts between employees and executives
corporate charter
What is a legal document that defines what the corporation can do