corporation
4 important questions on corporation
What is a company that operates on a for profit basis and is listed at the stock exchange market called?
- Corporation
- Stock exchange markets: digital markets for trading
- Shares offered based on company value
- Shareholders buy shares
- Board of directors manage corporations
What is the role of a board of directors in a corporation?
- Manage corporations by law
- Consists of elected individuals
- Determine dividends for stakeholders
- Committee advises board on issues
- Managing director runs company daily
What are the responsibilities of a CFO in a corporation?
- In charge of finance
- Reports to the CEO
- Financial expertise
- Decide on dividend amount
- Profit per share determines dividend
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What legal characteristics does a corporation as a legal entity possess?
- Considered a legal entity itself
- Can buy, sell, own, contract, sue
- Can be sued by others
- Owners may need to go to court
- Shareholders have limited liability
- Continues to exist beyond shareholder deaths
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