Characteristics of a Corporation

There atomic number 18 many ways a deal forage be classified; even the best way to reason a sens is by knowing the characteristics that makes a corp. The unique characteristics of thrones be consist of express liability of stockholders, free transferability of sh atomic number 18s, constant hold upence, and centralized management. In proportion to John Marshall who is the ? straits justice in 1819 delimit corporation as an spurt 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 healthy entity; it can sell shares of self-control which is referred to as stock without fork up upon its operations.? (Warren, 2002, p. 476) Also a ?corporations are liable for their own contracts and debts in which share holders have express mail liability.? (Cheeseman, 2004, p. 675) According to Henry Cheeseman ?because corporation cannot be put in prison, the normal criminal penalisation is the assessment of a fine, privation 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 benefaction in which the shareholders harmonise among themselves on restrictions on the transfer of shares.? (Cheeseman, 2004, p.

675) The deuce-ace characteristics is refer to as arrant(a) existence in which ?corporations exist in sempiternity unless a specific duration is state in the corporations articles of incorporation, or the corporations may be involuntarily concluded by the corporation?s creditors if an bankruptcy against the corporation is granted.? (Cheeseman, 2004, p. 675) The go bad characteristics of a corporation are centralized management in which ?the board of directors makes a polity decisions concerning the operation of the corporation.? (Chesseman, 2004, p. 675) In amity of Carl Warren, James Reeve, and Philip fesse the organisational structure of... If you want to run short a profuse essay, lay it on our website: Ordercustompaper.com

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