Match (by letter) the following terms with their definitions. Each letter is used only once.Terms _____ 1. Publicly held corporation. _____ 2. Organization chart. _____ 3. Articles of incorporation. _____ 4. Limited liability. _____ 5. Initial public offering. _____ 6. Double taxation. _____ 7. S corporation. _____ 8. Limited liability company. Definitions a. Shareholders can lose no more than the amount they invest in the company. b. Corporate earnings are taxed twice—at the corporate level and individual shareholder level. c. Like an S corporation, but there are no limitations on the number of owners as in an S corporation. d. Traces the line of authority within the corporation. e. Allows for legal treatment as a corporation, but tax treatment as a partnership. f. Has stock traded on a stock exchange such as the New York Stock Exchange (NYSE). g. The first time a corporation issues stock to the public. h. Describes (a) the nature of the firm’s business activities, (b) the shares to be issued, and (c) the composition of the initial board of directors.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Match (by letter) the following terms with their definitions. Each letter is used only once.

Terms
_____ 1. Publicly held corporation.
_____ 2. Organization chart.
_____ 3. Articles of incorporation.
_____ 4. Limited liability.
_____ 5. Initial public offering.
_____ 6. Double taxation.
_____ 7. S corporation.
_____ 8. Limited liability company.
Definitions
a. Shareholders can lose no more than the amount they invest in the company.
b. Corporate earnings are taxed twice—at the corporate level and individual shareholder level.
c. Like an S corporation, but there are no limitations on the number of owners as in an
S corporation.
d. Traces the line of authority within the corporation.
e. Allows for legal treatment as a corporation, but tax treatment as a partnership.
f. Has stock traded on a stock exchange such as the New York Stock Exchange (NYSE).
g. The first time a corporation issues stock to the public.
h. Describes (a) the nature of the firm’s business activities, (b) the shares to be issued, and
(c) the composition of the initial board of directors.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Types of business entities
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education