CORPORATION

NORMAN N. OGAHAYON
PRESENTER 12
CORPORATION
A corporation is an enterprises
chartered by law, with most of the legal
rights of a person, including the right to
conduct a business,to own and sell
property, to borrow money,and to sue or
be sued.
ADVANTAGE OF CORPORATION
The advantages inherit to corporations are the following:
1.Limited liability
2.Ease of expansion
3.Ease of transferring ownership;
4.Relatively long life; and
5.Ability to hire specialized management
LIMITED LIABILITY
o THE
LIABILITY OF STOCKHOLDERS ARE LIMITED TO THE AMOUNT OF THEIR
SHAREHOLDINGS.

EASE OF EXPANSION
o THE AUTHORITY GRANTED TO CORPORATIONS TO SELL ITS OWN SHARES OF
STOCK PROVIDE A MEANS TO POOL LARGE AMOUNTS OF FUNDS.

EASE OF TRANSFERRING OWNERSHIP

o IF A STOCKHOLDERLOSES INTEREST IN THE CORPORATION HE PARTLY
OWNS, HE MAY DISASSOCIATE HIMSELF FROM IT BY SELLING OR
DONATING HIS SHARES TO ANOTHER PERSON.
RELATIVELY LONG LIFE
o CORPORATION MAY BE STABLISHED TO HAVE LIVES OF UP TO 50 YEARS AND
MAY BE EXTENDED INDEFINITELY THROUGH RENEWALS OF DUCUMENTS

GREATER ABILITY TO HIRE SPECIALIZED

MANAGEMENT
o THE EXPANDED OPERATIONS OF CORPORATIONS MAKE IT POSSIBLE TO DIVIDE
THE OVERALL JOB INTO SMALLER SPECIALIZED POSITIONS.
DISADVANTAGES OF CORPORATIONS
CORPORATIONS ALSO HAVE DISADVANTAGE.THESE
THE FOLLOWING
1.MORE EXPENSIVE ANS COMPLICATED TO ORGANIZE;
2.DOUBLE TAXATION
3.MORE EXTENSIVE GOVERNMENT RESTRICTIONS
AND REPORTING REQUIREMENTS;AND
4.EMPLOYEES LACK PERSONAL IDENTITFICATION
WITH AND COMMITMENT TO CORPORATE GOALS
THAN THOSE EMPLOYED BY SOLE PROPRIETORSHIPS
AND PARTNERSHIPS.
MORE EXPENSIVE AND COMPLICATED TO
ORGANIZED
o AMONG THE THREEMAJOR FORMS OF OWNERSHIP,
MORE TIME AND MONEY ARE REQUIRED TO ORGANIZE A
CORPORATE.
THE ARTICLES IF INCORPORATION CONTAINS
THE FOLLOWING:
1.The name of the corporation;
2.Specific purpose or puposes;
3.Principal office of the corporation;
4.Term of existence of the corporation;
5.Names, nationalities, and residences of incorporations;
6.Number of directors or trustees;
7.Names, nationalities, and residences of directors;
8.Amount of authorized capital stock; and
9.Other matters.
DOUBLE TAXATION
oTheprofits derived by stockholders are taxed twice by the
government.
MORE EXTENSIVE GOVERNMENT RESTRICTION
AND REPORTING REQUIREMENTS
oCorporationsare subject to stringent
government restrictions and are required
to submit various reports on a periodic
basis.
EMPLOYEES LACK PERSONAL
IDENTIFICATION WITH AND
COMMITMENT
o Many stockholders are detached from the daily operations of
the corporation.
THAT’S ALL THANK YOU FOR
LISTENING
GODBLESS 