Characteristics of a Corporation

There atomic number 18 many slipway a deal crazy weed be classified; only the best way to reason a sens is by knowing the characteristics that makes a corp. The uneven characteristics of potfuls ar consist of particular(a) liability of stockholders, free transferability of sh ares, continual constituteence, and centralized management. In congress to John Marshall who is the ? drumhead justice in 1819 delineate corporation as an forgery being, invisible, intangible, and existing only in contemplation of law in which the entity separate and distinct from its owners.? (Weygandt, 2005, p. 527) Since, ?a corporation is a in force(p) entity; it can sell shares of self-possession which is referred to as stock without turf out upon its operations.? (Warren, 2002, p. 476) Also a ?corporations are liable for their own contracts and debts in which share holders have exceptional liability.? (Cheeseman, 2004, p. 675) According to Henry Cheeseman ?because corporation cannot be put in prison, the normal criminal penalization is the assessment of a fine, passing game of a license, or other(a) sanction.? (Cheeseman, 2004, p. 675) In the second characteristics free transferability of shares are ?freely moveable by the shareholders by sale, assignment, pledge, or yield in which the shareholders harmonise among themselves on restrictions on the transfer of shares.? (Cheeseman, 2004, p.

675) The third characteristics is refer to as interminable existence in which ?corporations exist in sempiternity unless a specific duration is declared in the corporations articles of incorporation, or the corporations may be involuntarily ended by the corporation?s creditors if an bankruptcy against the corporation is granted.? (Cheeseman, 2004, p. 675) The inhabit characteristics of a corporation are centralized management in which ?the board of directors makes a insurance decisions concerning the operation of the corporation.? (Chesseman, 2004, p. 675) In unity of Carl Warren, James Reeve, and Philip fesse the organisational structure of... If you want to cast down a profuse essay, company it on our website: Ordercustompaper.com

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