Characteristics of a Corporation

There are many agencys a oversee sens be classified; however the best way to categorize a sens is by knowing the characteristics that makes a corp. The rummy characteristics of potfuls are consist of limited liability of stemmaholders, gratuitous transferability of shares, invariable existence, and centralized management. In relation to John marshal who is the ? foreland justice in 1819 defined smoke as an counterfeit being, invisible, intangible, and existing only in contemplation of fairness in which the entity separate and distinct from its ingesters.? (Weygandt, 2005, p. 527) Since, ?a corporation is a effectual entity; it can sell shares of ownership which is referred to as stock without bear upon its operations.? (Warren, 2002, p. 476) Also a ?corporations are liable for their own contracts and debts in which share holders have limited liability.? (Cheeseman, 2004, p. 675) According to henry Cheeseman ?because corporation cannot be put in prison, the normal vile punishment is the assessment of a fine, loss of a license, or other(a) sanction.? (Cheeseman, 2004, p. 675) In the second characteristics free transferability of shares are ?freely transportable by the shareholders by sale, assignment, pledge, or gift in which the shareholders resign among themselves on restrictions on the transfer of shares.? (Cheeseman, 2004, p.

675) The third characteristics is refer to as perpetual existence in which ?corporations exist in perpetuity unless a specific duration is stated in the corporations articles of incorporation, or the corporations may be involuntarily terminated by the corporation?s creditors if an bankrup! tcy against the corporation is granted.? (Cheeseman, 2004, p. 675) The last characteristics of a corporation are centralized management in which ?the board of directors makes a policy decisions concerning the operation of the corporation.? (Chesseman, 2004, p. 675) In accordance of Carl Warren, James Reeve, and Philip fess the organizational structure of... If you want to get a succulent essay, order it on our website: OrderCustomPaper.com

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