Solutions of BOOK DOCX

Title	Solutions of BOOK
Author	Nowfel Eusuf
Pages	49
File Size	4 MB
File Type	DOCX
Total Downloads	51
Total Views	92

Summary

1-1 a. Sole Proprietorship Sole proprietorship is an unregistered business which is owned by a single owner. The owner is personally liable for all the business’ debts. It has no separate legal identity of its own. Partnership It’s a business organization in which two or more persons come together t...

Description

1-1 a. Sole Proprietorship Sole proprietorship is an unregistered business which is owned by a single owner. The owner is personally liable for all the business' debts. It has no separate legal identity of its own. Partnership It's a business organization in which two or more persons come together to operate a business and undertaking to share skills, money and profts. Corporation Corporation is an organization that is owned by shareholders who elect the board of directors. The board of directors oversee all the activities of a company. It is a separate legal entity from its owners. The shareholders share the profts of the company through dividends and are liable for the debts of the company. Charter A charter is a legal document, which contains the basic information about the company such as the company name, location, proft or proft status, company ownership and the board of directors. Bylaws Bylaws covers the purpose of organization and the rules of the corporation which is established by the board of directors b.Limited Partnership Limited partnership refers to an organization in which two or more people come together to operate a business. Limited partners are liable for business debts only upto their initial capital contribution. Limited Liability Partnership Limited liability partnership is a separate legal entity distinct from the partners. There is no requirement of a minimum capital contribution in the formation of the partnership. Each partner is not liable for the actions of the other partners; they are only liable for their own. The liability of each partner is limited to his or her share of initial capital investment. It has perpetual succession. That is, the partnership will not be wind up on the death or insolvency of a partner. Professional Corporation Professional corporations were formed to allow professional like doctors, lawyer, accountants and engineers to do business by forming a corporation. c.Stockholder wealth maximization Stockholder wealth maximization is the objective of a company. A stockholder's wealth is maximized when the net worth of shareholders are maximized. The net worth is maximized when the market price of a company is increased. d.Money Market...