C) Most important is cash flow from operating activities Within 90 days of filing, the initial statement of information is due and costs $25. ii) No one factor is decisive a) Current liabilities Debt the firm owes that must be paid within one year of the balance sheet date Dividends. caveat venditor. Positive character traits are those things that draw us to other people. Clever : I can juggle multiple tasks. ii) Duty of care requires a director to act in the corporations best interest and to exercise reasonable care in overseeing the corporations affairs and in making business decisions Who is the most powerful person in a corporation? 3 What are 3 characteristics of corporations? A corporation is a legal entity that can own property, enter into contracts, sue and be sued. a) Usually 1/3, but articles of incorporation or bylaws will specify 7) The board should establish a suitable committee structureconsistent with the institution's size and complexitythat encourages open participation by independent directors Professional appearance. 6) The board should adopt appropriate policies and procedures to manage processes, establish guidelines, and determine appropriate risk thresholds for all significant products and services Decision maker 3. A corporation is a separate legal entity that stockholders own. from your Reading List will also remove any A. Who is the most powerful person in a corporation? 2) Board members should be recruited for their relevant business, industry or financial expertise However, this special order would not have a sales commission. a) The ratification only applies to that specific transaction, does not create future authority, 1) The majority of directors should be independent of the company and its management service business. d) Disinterested and independent (has two methods of analysis = duty of loyalty Comment on Bridgewater's treatment of the $160,000 "sweetener. b) Limited partners have no voice in the active management of the partnership 2) To get information from management \end{array} When elderly, the customer uses savings acquired over the years. Things you have to give up when you make a particular choice. What are 3 characteristics of corporations? Professionals should always strive for a professional appearance, including appropriate attire and proper hygiene and grooming. b) Responsible for establishing the terms of any stock options executives may get as compensation iv) Default: Member-managed traits, like being honest, respectful, responsible, caring, fair. Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. When you see the list of filings for the company, select the Form 10-K for 2016. 2. is the process of starting and managing your own business. Stock Terminology. Which of the following is true with regard to the characteristics of corporations? ii) Board = Agent/Principal b) Shareholders, particularly in closely held corporations, may be reluctant to approve a board resolution to issue more shares out of the fear that those additional shares will dilute their voting power As a corporation is owned by stockholders and managed by employees, the sale of stock, death of a stockholder, or inability of an employee to function does not impact the continuous life of the corporation. What will she spend in each stage of her life? This statement is true. Tip. Double taxation of dividends c. Charter d. Which is a disadvantage of a corporate structure? a) Is that third party reasonable in assuming that the agent has the authority to bind the principal? This statement is true. Amazon. A. shareholders who have limited liability B. shareholders who are mutual agents C. its inability to own property D. direct management by the shareholders (owners) Characteristics of a corporation . a) Company, usually with the assistance of independent public accountants, verifies the information it has recorded and the manner in which it has presented the financial accounting, Accounting & Financial Reporting - Bookkeeping, i) Every transaction which a company is involved is included in the company's leger A corporation is subject to numerous state and federal regulations. What are some of the characteristics of a corporation? Was 2016 stronger or weaker than 2015? Calculate ratios for 2015 and 2016 to determine the following for Under Armour: D) Also, corporations are not natural personas, A) A business corporation is organized and carried on primarily for the profits of the shareholders 3) Accounts Receivable = amounts not yet collected from customers to whom goods have been shipped or services delivered (2) Inadequate capitalization (big one); iv) Managers = Agent, AgencyAction Binding the Corporation Types of Authority, i) Actual Authority Principal specifies expressly what the agent is authorized to do, through words or conduct Duration of life Unlimited 6. Amazon was founded in 1994 and is a world leader in e-commerce. Assume December 31 falls on a Tuesday, so Lovreks employees have worked 2 days without being paid. Removing #book# Terms in this set (8) i) If you have a good cash flow from operating activities you have a health business Your email address will not be published. Which one of the following is not a characteristic of a corporation? Duration of life 3. C) Last in, last out Method visualizes inventory as being added to and sold from the top of the stack, Accounting & Financial Reporting - Fixed Assets , Sometimes referred to as long-term assets or as property plant and equipment, are assets a firm uses to conduct its operations ii) Formed by filing articles of incorporation with the state Ownership of a corporation is held in shares of capital stock, which are transferable units. A. a) Somewhat analogous to apparent authority, can be said that inherent authority is a type of apparent authority An opportunity cost is next best choice you could have taken.). All corporations are owned by groups of investors. The limited liability and ease of transferring ownership rights makes it easier for a corporation to acquire capital by selling stock, and the size of the corporation allows it to issue bonds based on its name. \text { Output } & \text { TC } & \text { MC } \\ a) Gross negligence is the standard for board of directors 1. A corporation is not allowed to hold public office or vote, but it does pay income taxes. 7) Deferred Charges = type of asset similar to prepaid expenses, in that they reflect payments made in the current period for goods or services that will generate income in subsequent periods, Accounting & Financial Reporting - Assets - Inventory methods, Inventory = goods held for use in production or for sale to customers Generally Accepted Accounting Principles Which of the following is a characteristic of a corporation? Early in your career, you might exercise authority by being the go-to person on a certain subject within your . 2) Capital Gains a) At-will dissolved by any partner withdrawal Is South Africa registered as corporation? Confident : I am not afraid to ask questions. a) Articles of incorporation will create authorized shares Additional taxes. 1) Here, analysts typically like a 1:1 ratio, suggesting you have as much equity as you owe debt, Accounting & Financial Reporting - Income Statement, A) Within a fiscal year the money that a company earns and the expenses it incurs and the result is the net income or net profit, and at the end of the fiscal year the net income is carried over to the total equity line on the balance sheet They are kind to everyone. Select one: a. Relevant. Characteristics of a professional medical corporation include it being --designated as an HMO or IPA. Since the corporation is a separate legal entity, the owners do not have the power to bind the corporation to business contracts. Characteristics of a corporation include a. The liability of stockholders is limited to the amount each has invested in the corporation. How much does it cost to start a California corporation? Enforcing a claim for breach of fiduciary duty i) Shareholders are not authorized to act directly for the corporation, and thus cannot enforce a corporate claim against the managers to plan your money, and how much will be used and how much will be invested compared to how much you plan on earning. d. The company pays cash dividends to shareholders. It can be easier for a corporation to acquire debt and equity, since it is not constrained by the financial resources of a few owners. 2) Marketable Securities = securities that can be readily sold and converted into cash and are not held for current operations Corporation acts under its own name rather than in the name of its stockholders. Tax status of income Previous question Next question Assume the company does not use reversing entries. Mutual agency 6. vi) No shareholder liability Curiosity (eager to learn!). Brightstone Tire and Rubber Company has capacity to produce 170,000 tires. The companys inventory turnover and days inventory outstanding (DIO); accounts receivable turnover and days sales outstanding (DSO), accounts payable turnover and days payable outstanding (DPO), and the number of days in its cash conversion cycle. The board, in turn, formulates operating policies and also selects officers to execute policy and to perform daily management functions. J.P. Morgan Chase. OutputTCMC25,000$100,000$0.5050,000150,0001.0075,000187,5002.50100,000275,5003.00\begin{array}{rrr} Capital Acquisition It can be easier for a corporation to acquire debt and equity, since it is not constrained by the financial resources of a few owners. In general, the chief executive officer (CEO) is considered the highest-ranking officer in a company, while the president is second in charge. 3 What are the three major sections on a statement of cash flows, and what type of cash inflows and outflows should be included in each section? Legal status Separate legal entity 8. (3) The fraud or wrong results in an unjust loss or injury to the P. Piercing the Corporate Veil general overview -- advantages, etc. 5) Vote to amend to Articles 1) Land, equipment, machinery, office equipment vii) Can elect tax treatment as partnership B) Directors are responsible for the shareholders of the corporation. A shareholder's liability is limited to the amount he or she paid for the shares. Limited liability. c) Must be comprised entirely of independent directors How does the CPI differ from the MMPI? What are the Characteristics of Corporations? (d) You borrow money in August from RBC Financial Group. Limited to their investment. Characteristic Corporations 1. 1) What are the voting rights that s/s are able to exercise? i) Shareholders are not authorized to act directly for the corporation, and thus cannot enforce a corporate claim against the managers. 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