********Please rate these 3 or 4 stars otherwise I do not get credit for doing them*********
Ownership of a corporation is represented by _______________.
shares of stock. A corporation can have one or many shareholders.
What are they key advantages of corporations?
ability to raise capital via sale of stock; and limited liability of owners.
What are the key disadvantages of corporations?
Double taxation of business income, cost and complexity of formation and compliance, management constraints.
A corporations authority to act and liability for its actions are ____________ from the shareholders.
separate and apart (whatever that means..?)
Are shareholders liable for the debts, contracts or torts of the corporation?
Nope, they generally aren't. Limited liability for shareholders means that all they can lose is their investment in the stock. (sometimes the corporate 'veil' of limited liability can be pierced and they are liable)
Shareholders are liable for any debts they personally guarantee.
Who all can shareholders be?
Individuals, trusts, corporations, or any other entity