Characteristics of a Corporation

There are many federal agencys a ingest sens be classified; however the best way to categorize a sens is by knowing the characteristics that makes a corp. The rummy characteristics of mountains are consist of limited liability of stockholders, dethaw transferability of shares, invariable existence, and centralized management. In relation to John marshall who is the ? foreland justice in 1819 defined breadbasket as an counterfeit being, invisible, intangible, and existing only in contemplation of justness in which the entity separate and distinct from its induceers.? (Weygandt, 2005, p. 527) Since, ?a corporation is a effectual entity; it can sell shares of ownership which is referred to as stock without bear upon its operations.? (Warren, 2002, p. 476) Also a ?corporations are liable for their own contracts and debts in which share holders have limited liability.? (Cheeseman, 2004, p. 675) According to total heat Cheeseman ?because corporation cannot be put in pri son, the normal illegal punishment is the assessment of a fine, loss of a license, or other(a) sanction.? (Cheeseman, 2004, p. 675) In the second characteristics free transferability of shares are ?freely transferable by the shareholders by sale, assignment, pledge, or gift in which the shareholders settle among themselves on restrictions on the transfer of shares.? (Cheeseman, 2004, p.

675) The third characteristics is refer to as perpetual existence in which ?corporations exist in sempiternity unless a specific duration is stated in the corporations articles of incorporation, or the corporations may be invol untarily terminated by the corporation?s cre! ditors if an bankruptcy against the corporation is granted.? (Cheeseman, 2004, p. 675) The last characteristics of a corporation are centralized management in which ?the board of directors makes a policy decisions concerning the operation of the corporation.? (Chesseman, 2004, p. 675) In accordance of Carl Warren, James Reeve, and Philip fesse the organizational structure of... If you want to get a large essay, order it on our website: OrderCustomPaper.com

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