Purchase Solution

What is a corporation? (a) Explain the different types

Not what you're looking for?

Ask Custom Question

What is a corporation? (a) Explain the different types of corporations in this answer. (b) Describe the major characteristics of a large publicly traded corporation.

Purchase this Solution
Solution Summary

A corporation is an entity that is created under established state and federal laws which entitle it to the privileges and liability that is directly related to it and its representative members (Wilson, 2007). Corporations are generally set up as institutions that are trying to conduct some form of business for the purpose of monetary or other specific gains. A key feature in a corporation is called limited liability. In other words, if a corporation fails to succeed and this causes its stock holders to lose money or it causes employees to lose their jobs, neither party will be held responsible or liable for any of the remaining debts that the corporation may be held accountable for by their creditors (Nowlin, 2009).

Solution Preview

A corporation is an entity that is created under established state and federal laws which entitle it to the privileges and liability that is directly related to it and its representative members (Wilson, 2007). Corporations are generally set up as institutions that are trying to conduct some form of business for the purpose of monetary or other specific gains. A key feature in a corporation is called limited liability. In other words, if a corporation fails to succeed and this causes its stock holders to lose money or it causes employees to lose their jobs, neither party will be held responsible or liable for any of the remaining debts that the corporation may be held accountable for by their creditors (Nowlin, 2009).

Corporations are entity's, however they are regarded as having the same rights under the law as individual ...

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

View More Free Quizzes
Related BrainMass Solutions

  • This post addresses types of stock and types of dividends.

    Explain why. As a corporation, would you rather issue preferred or common stock? Explain why. 2. What are the different types of dividends that a company can pay out? Which type would you prefer? Explain why.

  • What are the different types of corporations? What is the process for incorporating?

    183279 What are the different types of corporations What are the different types of corporations? What is the process for incorporating? What are the different types of corporations? What is the process for incorporating?

  • Leverage analysis

    High degrees of financial leverage and operating leverage each involve different types of risk. Risk of what? 3. What are sources of operating leverage and financial leverage and explain their impact on operating and net income? 1.

  • The purpose of resume or Curriculum vitae (CV)

    Also, the combination resume allows you to list your jobs in chronological order which is different from a describing responsibilities and duties. It is merely a list of achievements and revealing skills you have used or learned.

  • Dividends that corporations issue

    This solution is comprised of a detailed explanation to answer what are the different types of dividends that corporations may issue, when should a corporation pay dividends, and would you prefer a stock dividend or a cash dividend.

  • 4 Types of Corporations

    581264 4 Types of Corporations What are the four types of corporations? What makes each corporation different? What are advantages and disadvantages to the most common form of corporation?

  • Tax / Nontax Advantages

    Select one of these entities and explain what tax and nontax advantages you think it may have over a C corporation. https://www.sos.state.tx.us/corp/businessstructure.shtml Find out what types of limited liability entities Texas permits besides a

  • 26 Practice Questions - Capital Structure

    What is a post-project audit and what are the advantages and disadvantages of using it? 13. What is a bond? Identify and briefly describe at least 3 different types of bonds. 14.

  • Types of Businesses and Method of Payments

    90170 Types of Businesses and Method of Payments You and a friend decide to open a small business, with a storefront and Internet site.

  • Managerial finance

    15751 Managerial Finance Please identify and explain the different financial markets, their functions, primary instruments, and the investor types.

View More Related Solutions