Closely held corporation - Study guides, Class notes & Summaries

What is a closely held business organization Ans- corporations that typically have relatively few shareholders and whose shares are not generally traded in the securities market.. *Public can't Participate What is a derivative action Ans- A law suit against a corporation that is brought by the shareholders against the corporation (the corp that suffers the injury, so the corp must bring the suit against the wrong doers) Example:Here the suit would be Barth Electric Co., Inc. v. Bar...

Advantages of operating a Sole Proprietorship? - Answer-simplicity (easy to establish and less paperwork-only requirement is business licenses and permit) single layer of taxation!!! privacy (not required to report anything to anyone) flexibility and control fewer limitations on personal income Personal satisfaction (take your own risks and enjoy the reward) Disadvantages of sole proprietorship - Answer-financial liability (unlimited liability) demands of the owner (alot more than pickin...

Conduct and Practices Handbook (CPH) Exam 136 Questions with Answers Duty of care - CORRECT ANSWER This refers to obligation #3 of registered representative (RR) about acting honestly, in good faith, and in a professional manner. This is a requirement to provide advice to clients with those attributes in mind along with the proper skills and knowledge to do so. It is important to note that the standard of care provided is not a standard of perfection. RRs are usually held to this standard muc...

BUSI 301 Week 5 Ch. 15 Liberty University - Question and answers correctly solved BUSI 301 Week 5: Ch. 15 Business corporation law - correct answer Often the title for a specific state law that covers such matters as the structure of the corporation, oversight of the activity of the corporation's managers, rights of the principals in the case of the sale of assets or ownership interests, annual reporting requirements, and other issues that affect the internal rules of the business venture....

For Indiana corporations, the occurrence of a Disposition—meaning an Asset Sale or Stock Sale—is governed by the statute IC § 23-1-41-2. By default, the Board of Directors may approve, without shareholder input, any Disposition that is within the Ordinary Course of Business, meaning it leaves the company with Significant Continuing Business Activity (i.e. at least 25% of its Assets or Revenue). But if a Disposition does not fit this category, it must be approved at a Meeting by...

Fundamentals of corporate finance Exam Questions and Answers capex decisions - Answer- capital expenditure decision:decisions to invest in tangible/intangible assets capex - Answer- Capital Expenditure-land,property, equip, long term real assets free cash flow - Answer- Cash available once the firm has covered it's capital expenditures financing decisions - Answer- concerned with the ways in which firms obtain and manage long term financing to acquire and support their productive assets...

Which of the following statements about LLC's is false? LLC's are a relatively new form of business organization. There is an extensive body of law based on court decisions governing LLC's. Shareholders have no personal liability for the debts of the LLC. The LLC is not a taxable entity. - Answer There is an extensive body of law based on court decisions governing LLC's. Investors favor using Limited Partnerships to invest in commercial real estate because they can ...

Considerations for choosing BUSINESS ENTITIES correct answers -TAXES: different entities have different tax structures -PERSONAL LIABILITY: possibility of losing personal assets to pay business debts SOLE PROPRIETORSHIP correct answers -1 person -No separate legal entity -Majority of U.S. businesses -No double tax -Unlimited personal liability PARTNERSHIPS correct answers -Distinct legal entity -Limited partners get limited liability -General partners have unlimited liability -No ...

BUSI 301 Week 5: Ch. 15 Study Guide 2024. Business corporation law - CORRECT ANSWER Often the title for a specific state law that covers such matters as the structure of the corporation, oversight of the activity of the corporation's managers, rights of the principals in the case of the sale of assets or ownership interests, annual reporting requirements, and other issues that affect the internal rules of the business venture. Revised Model Business Corporation Act (RMBCA) - CORRECT ANS...

mie 201 exam 2 questions and answers 100% pass Advantages of operating a Sole Proprietorship? - Correct Answer ️️ -simplicity (easy to establish and less paperwork-only requirement is business licenses and permit) single layer of taxation!!! privacy (not required to report anything to anyone) flexibility and control fewer limitations on personal income Personal satisfaction (take your own risks and enjoy the reward) Disadvantages of sole proprietorship - Correct Answer ️️ -financ...