2. If you were consulted on which between a stock private corporation or a cooperative should one intending to put up a business must establish, which one will you suggest. Discuss your answer. (Answer in not more than ten sentences.)
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- Kelvin is considering buying shares in a company. Kelvin asks you to explain to him what is meant by ?he ?erm? ?member? and ??hareholder?? and ?he differen? ?a?? in ?hich a person may become a member. He also asks you to explain who may be eligible to become a member, and how many members a company is permitted ?o ha?e? Finall?? Kel?in a?k? ?How does a person cease to be a member of a company??Required: Advise Kelvin.Write T if the statement is correct and F if the statement is incorrect. On the space provided, explain using the concepts discussed why your answer to a statement is T or F. 1. A person of minor age can be a shareholder but can never be an incorporator in a corporation. 2. A corporation can be an incorporator in another corporation. 3. A share certificate can be issued to those subscribers who partially paid their subscriptions. 4. A corporation or business partnership can be an incorporator but not a corporator. 5. All partnership can be an incorporator in a corporation. 6. On January 10,2021, Ana paid 90% of her subscription in Jollibee Foods Corporation. She will receive her certificate of stock on January 10,2021. 7. Continued inoperation of a corporation for at least 5 consecutive years will result in its certificate of incorporation being deemed revoked. 8. In case of conflict between the by-laws and the corporation code, the code shall prevail.Write T if the statement is correct and F if the statement is incorrect. On the space provided, briefly explain using the concepts discussed why your answer to a statement is T or F. 1. A person of minor age can be a shareholder but can never be an incorporator in a corporation.
- Assume that You are an investor and that you shortlisted the threecompanies as possible companies to invest in. What disclosures in theirnotes to financial statements got you interested or discouraged you inchoosing that entity. List as many as you can and give a shortexplanation.Match each of the following stockholders' equity concepts to the appropriate term (a – h). Question 41 options: limited liability public corporation corporation dividends articles of incorporation private corporation board of directors bylaws 1. Document which formally creates a corporation 2. Creditors cannot pursue stockholders' personal assets to satisfy claims 3. The rules and procedures 4. A legal entity, separate from the people who create and operate it 5. A company whose shares can be bought and sold in public markets 6. Group which meets periodically to establish corporate policies 7. A company whose shares are not bought or sold in public markets 8. Corporate income distributed to stockholdersWhich of the following represents one of the basic rights of stockholders? a. Stockholders may sell their stock back to the company if they wish. b. Stockholders may authorize a business contract on behalf of the corporation. c. Stockholders may determine at what price the company issues stock. d. Stockholders may participate in management by voting on corporate matters.
- Marty Byrd is debating setting up his new business venture as a corporation. He comes to you for advice. What would you tell him? Include at least 3 advangates and 1 disadvantage to incorporatingMatch each of the following stockholders' equity concepts to the appropriate term (a-h). Question 5 options: Document which formally creates a corporation Corporate income distributed to stockholders The rules and procedures for conducting a corporation's affairs Group which meets periodically to establish corporate policies A legal entity, separate from the people who create and operate it A company whose shares can be bought and sold in public markets A company whose shares are not bought or sold in public markets Creditors cannot pursue stockholders' personal assets to satisfy claims 1. articles of incorporation 2. limited liability 3. bylaws 4. corporation 5. public corporation 6. board of directors 7. private corporation 8. dividendsYour friend is considering incorporating and asks for advice. Which of the following is not a major concern? A. colors for the logo B. which state in which to incorporate C. number of shares of stock to authorize D. selection of the corporation name
- Write T or F. Then briefly explain. 1. Shareholders can transact business on behalf of the corporation. 2. All incorporators are shareholders but not all shareholders are incorporators.Kelvin is considering buying shares in a company. Kelvin asks you to explain to him what is meant by the terms ͚member͛ and shareholder͕͛ and ƚhe different ways in which a person may become a member. He also asks you to explain who may be eligible to become a member, and how many members a company is permitted ƚo haǀe͘ Finally, Kelvin asks ͞"How does a person cease to be a member of a company?͟" Required: Advise Kelvin.the letter of the choice that best completes the statement or answers the question. Question 1 To be eligible for S corporation status, a corporation must have no more than O 100 shareholders O 150 shareholders O 200 shareholders O 250 shareholders