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

Which of the following statements is CORRECT?

a. The corporate bylaws are a standard set of rules established by the state of incorporation. These rules are
identical for all corporations in the state, and their purpose is to ensure that the firm's managers run the firm in
accordance with state laws.
b. The corporate charter is a standard document prescribed by the state of incorporation, and its purpose is to
ensure that the firm's managers run the firm in accordance with state laws. Procedures for electing corporate
directors are contained in bylaws, while the declaration of the activities that the firm will pursue and the
number of directors are included in the corporate charter.
c. Companies must establish a home office, or domicile, in a particular state, and that state must be the one in
which most of their business (sales, manufacturing, and so forth) is conducted.
d. Attorney fees are generally involved when a company develops its charter and bylaws, but since these
documents are voluntary, a new corporation can avoid these costs by deciding not to have either a charter or
bylaws.
e. The corporate charter is concerned with things like what business the company will engage in, whereas the
bylaws are concerned with things like procedures for electing the board of directors.

Recommended textbook solutions

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

Century 21 Accounting: General Journal

11th EditionClaudia Bienias Gilbertson, Debra Gentene, Mark W Lehman

1,012 solutions

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

Intermediate Accounting

14th EditionDonald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

1,471 solutions

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

Essentials of Investments

9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie

689 solutions

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

Fundamentals of Financial Management

14th EditionEugene F. Brigham, Joel F Houston

845 solutions

Recommended textbook solutions

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

Fundamentals of Financial Management, Concise Edition

10th EditionEugene F. Brigham, Joel Houston

777 solutions

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

Financial Accounting

4th EditionDon Herrmann, J. David Spiceland, Wayne Thomas

1,097 solutions

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

Essentials of Investments

9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie

689 solutions

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

Principles of Auditing and Other Assurance Services

22nd EditionKurt Pany, Ray Whittington

194 solutions

In a primary market transaction, the corporation is the seller, and the transaction raises money for the corporation. Corporations engage in two types of primary market transactions: public offerings and private placements. A public offering, as the name suggests, involves selling securities to the general public, whereas a private placement is a negotiated sale involving a specific buyer.

Page 15

To learn more about the SEC, visit www.sec.gov.

By law, public offerings of debt and equity must be registered with the Securities and Exchange Commission (SEC). Registration requires the firm to disclose a great deal of information before selling any securities. The accounting, legal, and selling costs of public offerings can be considerable.

Partly to avoid the various regulatory requirements and the expense of public offerings, debt and equity are often sold privately to large financial institutions such as life insurance companies or mutual funds. Such private placements do not have to be registered with the SEC and do not require the involvement of underwriters (investment banks that specialize in selling securities to the public).

Students also viewed

Which of the following is advantages 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 are the advantages 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 correct One of the advantages of the corporate form of organization is that it avoids double taxation?

TF: One advantage of the corporate form of organization is that it avoids double taxation. False: Corporations have double taxation. Proprietorships and partnerships do not have double taxation.

Which of the following is not an advantage of the corporate form of Organisation?

The correct answer is Option C. Explanation: In a corporate form of organization, the company does not have favorable tax treatment from the tax departments as the tax is levied as per progressive basis of taxation, i.e., the more the earnings, the more the taxes paid.