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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