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Chapter 8 Section 3

Chapter 8 Section 3. Evalisse Serrano and Jaelly Solano Period 4. -A corporation is a legal entity, being owned by individual stock holders. Each face limited liability for the firms debts -Stockholders own stock which is a certificate of ownership in a corporation.

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Chapter 8 Section 3

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  1. Chapter 8 Section 3 Evalisse Serrano and Jaelly Solano Period 4

  2. -A corporation is a legal entity, being owned by individual stock holders. Each face limited liability for the firms debts -Stockholders own stock which is a certificate of ownership in a corporation. If you own a stock in a corporation, you are part owner of that corporation

  3. -A corporation is defined as an “entity” because it has a legal identity separate from those of its owners. -A corporation pays taxes, may engage in business, make contracts, sue other parties, and get sued by others. -Closely held corporations rarely trade their stock, but pass it on within families. -Public held corporation have many share holders who can buy or sell stock in the open market. -Stocks are bought and sold at financial markets called stock exchanges. Ex: New York stock exchanges.

  4. -Corporation have the same basic structure. A corporation owners – the stock holders- elect a board of directors. -The board of directors makes all the major decisions pf the corporation. -Some advantages of incorporation are limited liability for owners, transferable ownership, ability to attract capital, and long life.

  5. Quiz • What are the benefits of a corporation/ -They pay taxes, may engage in a business, make contracts, file a lawsuit or be sued by others. • What is a corporation? -A legal entity or being owned by an individual stock holder, each of whom faces limits liability for the firms debt. • What is a stock? -A certificate of ownership. • What is a publically held corporation? -A corporation that has many shareholders who can buy and sell stock in the open market. • What does MNC stand for? -MultiNational Corporation.

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