Briefly explain the process of forming a C Corporation.
What will be an ideal response?
Answers will vary. The formation of a corporation requires filing articles of incorporation and paying filing fees. It also requires the adoption of corporate bylaws, which are detailed rules that govern the way the corporation is organized and managed. Because of these requirements, forming a corporation tends to be more expensive and complex than forming a sole proprietorship or partnership. The requirements, however, vary among the states. Some states are known for their simple forms, inexpensive fees, low corporate tax rates, and "corporation-friendly" laws and court systems. In those states, forming a corporation is not much harder or more expensive than setting up a sole proprietorship and sometimes can be simpler than forming a partnership. Not surprisingly, many large companies choose to incorporate in states with such favorable environments-even if they intend to do the majority of their business in other states.
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How would you describe someone with strong moral identity?
What will be an ideal response?
Who establishes executive compensation?
a. The board of directors. b. The shareholders. c. The officers themselves. d. An independent CPA firm.
Use the expected value criterion to select the best alternative. Assume that the probability of S2 is equal to 0.4
What will be an ideal response?
When a corporation engages in a stock repurchase, each remaining shareholder owns a smaller proportion of the firm
Indicate whether this statement is true or false.