What does the Charter name of a corporation mean?
The charter also includes the name of the authorized agent. No matter the location, a corporation must have a designated registered agent who serves as the authorized receiver of important legal documents for the corporation. Corporations must provide the reasons why they were formed.
What are the components of a corporate charter?
At the most basic level, the corporate charter includes the corporation's name, its purpose, whether the corporation is a for-profit or nonprofit institution, the location of the corporation, the number of shares that are authorized to be issued, and the names of the parties involved in the formation.
What is the purpose of a corporation?
A corporation is a legal entity created by individuals, stockholders, or shareholders, with the purpose of operating for profit. Corporations are allowed to enter into contracts, sue and be sued, own assets, remit federal and state taxes, and borrow money from financial institutions.
What is the process of starting a corporation?
The creation of a corporation involves a legal process called incorporation where legal documents containing the primary purpose of the business, name and location, and the number of shares and types of stock
What is a corporate charter quizlet?
Corporate charter. A legal document that the state issued to a company based on information the company provides in the articles of incorporation. Corporation. A legal entity, created by the state, whose assets and liabilities are separate from its owners.
What is the main function of a corporate charter quizlet?
Corporate charters require the directors of the company to protect the financial interests of the company's stockholders. According to corporate charters, the legal line of authority for a company runs from the state, to directors, to managers, and to shareholders of the company in this sequence.
How is a corporation formed quizlet?
Public corporations are formed by government entities for a government or political purpose. Local governments form corporations for functions such as water, sewage, school, parks, etc., which are some times referred to as municipal corporations. Private corporations are formed to carry on private owned businesses.
What is a corporation quizlet?
Corporation. A business owned by a group of people and authorized by the state in which it is located to act as though it were a single person, separate from its owners.
What is found in a corporate charter?
At the most basic level, the corporate charter includes the corporation's name, its purpose, whether the corporation is a for-profit or nonprofit institution, the location of the corporation, the number of shares that are authorized to be issued, and the names of the parties involved in the formation.
What is a stock Economics quizlet?
stock. a share of ownership in the assets and earnings of a business.
How is a corporation formed?
A corporation is created when it is incorporated by a group of shareholders who share ownership of the corporation, represented by their holding of stock shares, and pursue a common goal. The vast majority of corporations have a goal of returning a profit for their shareholders.
Is the process by which a corporation is formed?
Incorporation is the legal process used to form a corporate entity or company. A corporation is the resulting legal entity that separates the firm's assets and income from its owners and investors.
How can you own a corporation?
To become a corporation, you will need to hire an attorney, appoint directors and a registered agent, create bylaws, issue stock, and file articles of incorporation and IRS forms.
Why do corporations issue stock?
Companies issue shares to raise money from investors who tend to invest their money. This money is then used by companies for the development and growth of their businesses.
What is a corporation quizlet US history?
Corporation. Business that is owned by investors that purchase shares of that company. Stock. Shares in a business purchased by the public.
What defines a corporation?
A corporation is a business entity that is owned by its shareholder(s), who elect a board of directors to oversee the organization's activities. The corporation is liable for the actions and finances of the business – the shareholders are not.
What is a document that discloses information about a company's earnings, assets and liabilities, its products and
Document that discloses information about a company's earnings, assets and liabilities, its products and services, a particular stock, and the qualifications of its management. Securities. All of the investments (stocks, bonds, mutual funds, options, and commodities) that are bought and sold on the stock market.
What is the term for a stock that sells for less than $1 a share?
stock issued by a company with a capitalization of $500 million or less. penny stock. sells for less than $1 a share although it can sell as much as $10 a share. bull market. a market condition that occurs when the investors are optimistic about the economy and buy stocks. bear market.
What is growth stock?
Growth Stock. a stock from a company which has a consistent record of relatively rapid growth and earnings in all economic conditions. Income Stock. a stock which pays higher than average dividends because the company chooses to retain only a small portion of the profits.
What is a cyclical stock?
cyclical stock. has a market value that tends to reflect the state of the economy. defensive stock. is a stock that remains stable during declines in the economy. large cap stock. is a stock from a corporation that has issued a large number of shares and stock and has a large amount of capitalization. Capitalization.
What is a stock that has a low market price?
stock from a company which has a low market price considering historical earning records and value of current assets. Countercyclical Stock. Stock from a company which gives consistent records of returns even when the economy is suffering because their product is always in demand. Cyclical Stock.
What is a broker?
Broker. a person who is licensed to list, lease, buy, exchange, auction, negotiate, or sell interest in real property for others and to charge a fee for services. New York Stock Exchange. The oldest and largest exchange with the strictest company standards.
What is annual dividend?
a market condition that occurs when investors are pessimistic about the economy and sells stocks. annual dividend of investments divided by the current market value. a calculation that includes that annual dividend as well as any increase or decrease in the original purchase of the price of the investment.