 Name Rashid Ali Jatoi

 Roll number 20s/mbanbs/16

 Presentation topic Corporation

 Subject business and finance

Corporation

 It is a legal entity, separate from its owner, that is created by state statue so
that owner may engage in any legal enterprise without fear of personal
liability.
 Treated as individual, can own property, hire workers, pay taxes, sue and
sued, make and sell products.

 Main purpose behind of the corporation is it provide limited liability to its

share holder.
Advantages

 No personal liability for stock holder.

 Ease of accumulating capital
 Readily transferable ownership of shares
 Continuous existence
 Professional management
Disadvantages

 Heavy taxation

 Strict regulation due to Article Of Association, memorandum of associtaion

 Separation and control

Types of business corporation

 C Corporation
It is the most common form of incorporation among business and contains almost
all of attributes of a corporation. Owner received the profits and are taxed at
the individual level, while the corporation itself is taxed as a business entity.

S Corporation
It is created in the same way as a C corporation but it is different in owner
limitation and tax purpose. S corporation is consist of up to 100 share holder and
is not taxed as a separate instead, the profits/losses are shouldered by the share
holders on their personal income tax return.
 Non profit corporation
commonly used by charitable, educational and religious organisation to operate
without generating the profits. A non profit is exempted from taxation. Any
contribution, donation or revenue received are retained in entity to spend on
operations, expansion or future plans
Right of stockholder

 Right to sale their shares

 The right to vote on the directors nominated by the board

 Right to dividends if they are declared

 Right to purchase new shares issued by the company

Types of share of capital
Authorised share capital
It is the maximum amount of capital that a company is authorised to raise. A
company does not usually issue the full amount of its authorise share of capital.
Instead some of capital it held in reserve by the company for possible future use.

issued share capital

A company may elect to only issue a portion of the total share capital with the
plan of issuing more share at a later that. Issued share capital is the total value
of the shares a company sells
Paid up share capital
Paid up share capital is the amount of money a company has received from
shareholder in exchange for its share

Subscribed share of capital

When a company issues its authorised share of capital, some part of it may not
be subscribed by the investor. Subscribed share capital is the monetary value of
all the shares that the investors have committed to buy.

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Stock and bond

 stock
Represent the owner ship of firm
issued as share

 Bonds
used to raise the money
issued as certificate in exchange for money borrowed from an investor

the end