this question in the appropriate place on Blackboard. An S-Corp can only have how many shareholders max and how many classes of stock? • Concepts / Terminology to Know: • LLC: Benefits of limited liability like a corporation but pass through taxes S-Corp: Know the four criteria, tax structure, pass through taxes... • Close corporation: simply means few shareholders, generally family run businesses • Registration: States - usually go through Secretary of State • Governance: Business Judgment Rule • Blue Sky Laws: Securities laws at the state level Federal Laws: Sarbanes Oxley, see chapter 8

this question in the appropriate place on Blackboard. An S-Corp can only have how many shareholders max and how many classes of stock? • Concepts / Terminology to Know: • LLC: Benefits of limited liability like a corporation but pass through taxes S-Corp: Know the four criteria, tax structure, pass through taxes... • Close corporation: simply means few shareholders, generally family run businesses • Registration: States - usually go through Secretary of State • Governance: Business Judgment Rule • Blue Sky Laws: Securities laws at the state level Federal Laws: Sarbanes Oxley, see chapter 8

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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2. It is the governing body in a non-stock Corporation. * A. Corporators B. Board of Directors C. Board of Trustees D. Corporate Officers
(Multiple Choice) A corporation can only pay dividends to shareholders from its: 1. Legal Capital 2. Authorized Shares 3. Retained Earnings 4. Contributed Capital 5. Share Capital
Item 3 Which private company would benefit from using ASPE rather than IFRS? Multiple Choice company with a control block who owns the majority of the business company with operations internationally company interested in debt/equity financing in the external market company whose parent company is a major public corporation
True or False 1. Only the sole proprietorship and partnership forms of business organization can resort to borrowing as their source of funds. 2. Only a corporation can issue shares of stock to the public as a source of its capital. 3. Corporation has more options on the manner it raises its capitalization, as compared to other forms of business organization. 4. A bond certificate is a contract of debt. 5. Stockholders are investees in a corporation.
Match each corporate characteristic 1 through 8 with the description that best relates to it. Characteristic Descriptions 1. Transferability of ownership 2. Ability to raise large capital amounts 3. Duration of life 4. Legal status Entity with similar rights as individual 5. Ease of formation High because buying stock is attractive 6. Government regulation Indefinite 7. Mutual agency More severe than partnerships and proprietorships 8. Owner authority and control TT TT O
Write T or F. Then briefly explain. In a corporation, minority shareholders are compliant to the wishes of the majority.
26. The advantages of an LLC include all of the following except: A. Members are protected from personal liability for business decisions B. Sharing of profits C. Up to the members to decide who has earned what percentage of the profits or losses D. Entire net income of the LLC is subject to taxes E. Less record keeping compared to a Corporation
Martha and Carol are the only shareholders in Wishfulthinking Corporation. The corporation has interest income, dividend income, capital gains, and rental income from large and varied real estate investments. This corporation is known as what type? a.A personal service corporation b.A personal holding company c.An S corporation d.A small business corporation
Hans
Which 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.
Which of the following is the primary element that distinguishes accounting for corporations from accounting for partnerships? a. The corporation draws a sharper distinction in accounting for sources of capital. b. The entity theory relates primarily to the other forms of business organization. c. In a corporation, retained earnings may be reduced only by the declaration of dividends. d. Generally accepted accounting principles apply to corporations but have relatively little applicability to other forms of business organizations.
Is forming a corporation does not have the same advanatges as forming an LLC, but the cost are likely to be higher? Please answer immediately :) Thank you