BUSI 301 QUESTIONS AND ANSWERS LATEST UPDATE ALREADY
GRADED A+
Corporation
Fictitious legal entity that exists as an independent "person" separate from its principals
privately held corporation
those that do not sell ownership interests through sales via a broker to the general public or to financial
institutions of investors
publically held corporation
when corporations wish to fund capitalization through the sale of ownership interest to the general
public and commercial investors
Domestic
in the state of its incorporation
foreign
transacts business in a state other than its state of incorporation
alien
formed outside of the U.S. and transacts business in the U.S.
Nonprofit
those with no profit-seeking owners, but rather exist to perform some service to the public at large (i.e.
charities)
Public Corporation
formed by a government body to serve the public at large
Professional Corporation
where the ownership is restricted to a particular profession licensed in that field
articles of incorporation
document must state the corporations' name, purpose number of shares issued, and address of the
corporation's headquarters
pre-incorporation activity
such activities include arranging for necessary capital through a loan, recruiting personnel, leasing
property, and arranging to have the business incorporated
promoter
, the individual who performs arranging for necessary capital through a loan, recruiting personnel, leasing
property, and arranging to have the business incorporated
widest range
Corporations have perhaps the _______ ________ of options when considering how to finance their
operations.
debt selling of equity
corporations may be funded through ______ or through _____ ___ ______ in a variety of forms
debt
for larger projects, corporations may also use more sophisticated forms of _____ such as issuing bonds
or debentures
equity
corporations also sell ______ to capitalize their operations.
public offerings
a very complex and time-consuming process of converting the corporation from privately held to
publicly held by engaging in an initial ______ ______.
liability
shareholders, directors, and officers of a corporation are insulated from personal _____ in case the
corporation runs up large debts or suffers some ________.
corporate veil
liability protection is also known as
personal guarantee
if a corporation is a start-up or has limited assets, these creditors will almost always require that the
shareholders give a _______ ________
C
"___" corporations are considered a separate legal, taxable entity from the owners for income tax
purpose
double taxation
corporations pay tax on their earnings and then tax is paid again if corporate earnings are distributed to
shareholders in the form of dividends, is called:
subchapter 5
use of losses to limit tax liability. avoids double taxation. single class of stock. no non-resident alien
shareholders.
GRADED A+
Corporation
Fictitious legal entity that exists as an independent "person" separate from its principals
privately held corporation
those that do not sell ownership interests through sales via a broker to the general public or to financial
institutions of investors
publically held corporation
when corporations wish to fund capitalization through the sale of ownership interest to the general
public and commercial investors
Domestic
in the state of its incorporation
foreign
transacts business in a state other than its state of incorporation
alien
formed outside of the U.S. and transacts business in the U.S.
Nonprofit
those with no profit-seeking owners, but rather exist to perform some service to the public at large (i.e.
charities)
Public Corporation
formed by a government body to serve the public at large
Professional Corporation
where the ownership is restricted to a particular profession licensed in that field
articles of incorporation
document must state the corporations' name, purpose number of shares issued, and address of the
corporation's headquarters
pre-incorporation activity
such activities include arranging for necessary capital through a loan, recruiting personnel, leasing
property, and arranging to have the business incorporated
promoter
, the individual who performs arranging for necessary capital through a loan, recruiting personnel, leasing
property, and arranging to have the business incorporated
widest range
Corporations have perhaps the _______ ________ of options when considering how to finance their
operations.
debt selling of equity
corporations may be funded through ______ or through _____ ___ ______ in a variety of forms
debt
for larger projects, corporations may also use more sophisticated forms of _____ such as issuing bonds
or debentures
equity
corporations also sell ______ to capitalize their operations.
public offerings
a very complex and time-consuming process of converting the corporation from privately held to
publicly held by engaging in an initial ______ ______.
liability
shareholders, directors, and officers of a corporation are insulated from personal _____ in case the
corporation runs up large debts or suffers some ________.
corporate veil
liability protection is also known as
personal guarantee
if a corporation is a start-up or has limited assets, these creditors will almost always require that the
shareholders give a _______ ________
C
"___" corporations are considered a separate legal, taxable entity from the owners for income tax
purpose
double taxation
corporations pay tax on their earnings and then tax is paid again if corporate earnings are distributed to
shareholders in the form of dividends, is called:
subchapter 5
use of losses to limit tax liability. avoids double taxation. single class of stock. no non-resident alien
shareholders.
