CHAPTER OBJECTIVES © SOUTH-WESTERN EDUCATIONAL PUBLISHING CORPORATE FORMS OF BUSINESS OWNERSHIP nExplain the basic features of a corporation. nDescribe.

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CHAPTER OBJECTIVES © SOUTH-WESTERN EDUCATIONAL PUBLISHING CORPORATE FORMS OF BUSINESS OWNERSHIP nExplain the basic features of a corporation. nDescribe how a corporation is formed and organized. nList some of the major advantages and disadvantages of the corporate form of business. nDescribe several specialized forms of business organizations. 66

© SOUTH-WESTERN EDUCATIONAL PUBLISHING BASIC FEATURES OF CORPORATIONS nCharter nStockholders nDirectors nOfficers

© SOUTH-WESTERN EDUCATIONAL PUBLISHING FORMATION OF CORPORATIONS nPreparing the certificate of incorporation nNaming the business nStating the purpose of the business nInvesting in the business nPaying incorporation costs nOperating the new corporation nGetting organized nHandling voting rights

© SOUTH-WESTERN EDUCATIONAL PUBLISHING CLOSE AND OPEN CORPORATIONS Close corporation nAlso called closely held corporation nDoes not offer shares of stock for public sale nJust a few stockholders own it Open corporation nAlso called publicly owned corporation nOffers shares of stock for public sale nLarge number of stockholders

© SOUTH-WESTERN EDUCATIONAL PUBLISHING CORPORATIONS nAvailable sources of capital nLimited liability of stockholders nPermanency of existence nEase in transferring ownership nTaxation nGovernment regulations and reports nStockholders records nCharter restrictions AdvantagesDisadvantages

© SOUTH-WESTERN EDUCATIONAL PUBLISHING SPECIALIZED TYPES OF ORGANIZATIONS nJoint ventures nLimited liability companies nNonprofit corporations nQuasi-public corporations nCooperatives

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