Who is responsible for the major policy decisions of a corporation?

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Who is responsible for the major policy decisions of a corporation?

Directors. The board of directors sets policy for the corporation and makes major financial decisions. Among other things, the directors: authorize the issuance of stock.

What do shareholders of a corporation directly elect?

The correct answer is (c) the board of directors. Stockholders are responsible for selecting the board of directors of the corporation and have the right to directly elect them.

Which one of the following would be considered an advantage of the corporate form of organization?

Advantages of a corporation include personal liability protection, business security and continuity, and easier access to capital. Disadvantages of a corporation include it being time-consuming and subject to double taxation, as well as having rigid formalities and protocols to follow.

What is the ability of a corporation to obtain capital?

Corporations have a remarkable ability to obtain the huge amounts of capital necessary for large-scale business operations. Corporations acquire their capital by issuing shares of stock; these are the units into which corporations divide their ownership.

What decisions does the board of directors make for a corporation quizlet?

The board of directors is the ultimate authority in every corporation. The board selects and removes corporate officers, determines the capital structure of the corporation, and declares dividends

What are guidelines used in making consistent decisions?

The correct answer is (c) the board of directors. Stockholders are responsible for selecting the board of directors of the corporation and have the right to directly elect them.

What do shareholders do in a corporation?

A shareholder, also known as a stockholder, participates in the management of a company. A shareholder is an individual, institution, or company that owns a share of a corporation’s stock. Since shareholders are also the owners, they get the benefits of the company profits when the stock value increases.

Do stockholders elect a board of directors?

A board of directors is elected by shareholders but nominated by a nominations committee.

Do stockholders elect officers?

Officers and Directors have a fiduciary duty to the company and its Shareholders, the highest duty of loyalty known to law. Since Shareholders elect the Directors and Directors elect the officers, it is apparent that Shareholders hold the ultimate position of authority in a company.

What power do shareholders have in a company?

Common shareholders are granted six rights: voting power, ownership, the right to transfer ownership, dividends, the right to inspect corporate documents, and the right to sue for wrongful acts.

Which one of the following is considered an advantage of the corporate form of organization quizlet?

One advantage of the corporate form of organization is that it avoids double taxation. Organizing as a corporation makes it easier for the firm to raise capital. An advantage of the corporate form of organization is that corporations are generally less highly regulated than proprietorships and partnerships.

Which of the following is an advantage of the corporate form of business when compared to sole?

Compared to partnerships and sole proprietorships, a major advantage of the C (conventional) corporation as a form of business ownership is that it: has the ability to raise more money. as income to the corporation, then again as income to the stockholders on earnings that are distributed as dividends.

Which of the following is an advantage of the corporation?

The advantages of a corporation are limited liability, the ability to raise investment money, perpetual existence, employee benefits and tax advantages. The disadvantages include expensive set up, more heavily taxed, taxes on profits.

Which of the following are considered to be advantages of operating as a corporation select all that apply )?

Advantages of incorporating a business include: Limited liability, ability to raise more money for investment, size, perpetual life, ease of ownership change, ease of attracting talented employees, separation of ownership from management.

What is the ability of corporation?

A corporation is a legal entity that is separate and distinct from its owners. Under the law, corporations possess many of the same rights and responsibilities as individuals. They can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes

What are characteristics of corporation?

The corporation is considered a separate legal entity, conducting business in its own name. Therefore, corporations may own property, enter into binding contracts, borrow money, sue and be sued, and pay taxes. Stockholders are agents for the corporation only if they are also employees or designated as agents.

Who owns a corporation?

shareholders

What is the advantage of corporation over partnership?

The advantages of the corporation structure are as follows: Limited liability. The shareholders of a corporation are only liable up to the amount of their investments. The corporate entity shields them from any further liability, so their personal assets are protected.

What decisions does a corporation’s board of directors make?

What Does a Board of Directors Do? In general, the board makes decisions as a fiduciary on behalf of shareholders. Issues that fall under a board’s purview include the hiring and firing of senior executives, dividend policies, options policies, and executive compensation.

What does the board of directors in a corporation do quizlet?

Generally, board of directors manages business of corporation. It sets policy, monitors and supervises officers, declares dividends and other distributions, decides when the corporation will issue stock, recommends fundamental corporate changes, etc.

What role does a board of directors serve in a corporation?

Directors work with management to approve budgets, business plans, senior job descriptions, compensation, policies, and financial statements.

Are precise statements of results a business expects to achieve?

A goal is a precise statement of results the business expects to achieve.

What is the obligation to complete specific work?

ABResponsibilityThe obligation to complete specific workAuthorityThe right to make decisions about how responsibilities should be accomplishedAccountabilityTaking responsibility for the results achievedUnity of CommandMeans there is a clear reporting relationship for ll staff of a business49 more rows

What is the most important role of business?

The most important role of businesses is to make and distribute products and services needed by consum-ers, government, and other businesses. When a new business opens, it pays wages to its workers.

Who makes the major policy and financial decisions in a corporation?

ABBoard of DirectorsThe people who make the major policy and financial decisions for a corporationStockA unit of ownership in a corporationDividendMoney paid regularly by a company to its shareholders out of its profits19 more rows

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