jmu women's field hockey roster 1) A corporation is an organizational entity that is constituted by a group of people who have pooled their resources to create a singular entity with the intention of making a profit. The stockholder wishing to transfer (sell) stock does not require the approval of the other stockholders to sell the stock. Example #2 ? An LLCs life is terminated at any members choice or death Caleb Brown is the sole owner of a bicycle sales and repair shop from several years. 2) Balance sheet value (or book value) = Cost less allowance for depreciation, Accounting & Financial Reporting - Intangible Assets , Such as patents or trademarkshave no physical existence, but often have substantial value Partnership income and expenses are said to "flow/pass through" to the partners in proportion to their ownership interests. Is Mutual Agency a characteristic of a corporation? What is a relevant cost? b. a) Appears on the right side of the balance sheet b/c it may be considered as the amount that is "owed" to the stockholders, Accounting & Financial Reporting - Financial statements are produced through a 3-stage process, i) First "Recording and controls" stage Life span. C) Actively helping plan the long-term direction and goals for the institution a market where stocks and bonds are traded. A good logo is: Simple. Positive character traits are those things that draw us to other people. Previous 5) Was made by a director or directors who otherwise were not independent (usually, a closed corporation operates like a partnership). Less Is More. Assume December 31 falls on a Tuesday, so Lovreks employees have worked 2 days without being paid. Is South Africa registered as corporation? b) You or a family member received more than $120,000 in direct compensation in any twelve month period over the past three years d) Disinterested and independent (has two methods of analysis = duty of loyalty Similarly, a person or an entity wishing to purchase stock in a corporation does not require the approval of the corporation or its existing stockholders before purchasing the stock. Retrieve the 2016 Under Armour financial statements at www.sec.gov by clicking on Filings and then searching for Under Armour under Company Filings. Did these ratios get stronger or weaker in 2016 compared to 2015? i) If there is an emergency, the notice requirement can be waived, A) Directors Here are 15 professional characteristics that can help you earn the respect of others and position you for promotions: 1. What are some of the characteristics of a corporation? What are the 4 attributes of corporation? a) General partners have comparable liability to the liability they have in a general partnership, but a limited partners liability is limited to the capital she has contributed to the partnership Amazon. 2) A corporation is typically formed under the laws of a particular country, and is subject to the jurisdiction of the government in which it was created. Capital acquisition. Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. Example #7 ? \end{array} It advances comprehension, proper understanding, and sharing of information applicable for making decisions. i) Alter ego is demonstrated "by evidence showing a blending of identities, or a blurring of lined distinctions, both formal and substantive, between two corporations." 100,000 & 275,500 & 3.00 Tip. He is not required to consult anybody. Required fields are marked *. The corporation?s resources are limited to what the stockholders can contribute. 3 What are 3 characteristics of corporations? i) Accrual method says that what we want to do is determine when you are entitled to receive revenue and when we want to record that during that period 2) Preferred stock sits between common stock and debt What are the characteristics of a good person? iv) Default: Member-managed Business Law in Canada, 11e (Yates) Chapter 11 Corporations. b) Shareholders, particularly in closely held corporations, may be reluctant to approve a board resolution to issue more shares out of the fear that those additional shares will dilute their voting power It is a team of people, including suppliers of money and labor, who work together to earn a return on their investment. Will consumption remain the same over the course of the consumer's life? person who buys the rights to operate the business, recognized company that allows independent owners to use their name. A corporation is not allowed to hold public office or vote, but it does pay income taxes. 1) CEO and CFO must personally certify that the financial statements are in fact accurate, Accounting & Financial Reporting - Retained Earnings, A) The cumulative amount the company has retained from its products What are the Characteristics of Corporations? Some refer to it as a legal person.. c) Informed and rational basis = duty of care Which is a disadvantage of a corporate structure? At its most basic level, what is corporations about? i) Factors When someone is generous, kind, energetic, or optimistic they exude energy that attracts others. 3) Accounts Receivable = amounts not yet collected from customers to whom goods have been shipped or services delivered 6) The board should adopt appropriate policies and procedures to manage processes, establish guidelines, and determine appropriate risk thresholds for all significant products and services In addition, Euro has made the order conditional on receiving European safety certification. Clothing should always be clean and ironed properly. iv) Board of directors manage Versatile. Examples of personal positive qualities: kind, gentle, strong, resilient, caring, assertive, hard-working, reliable, honest, practical, responsible, loyal, mature, creative, consistent, appreciative, capable, quick, sensitive, perceptive, patient, thoughtful, fit, trustworthy, shows initiative, motivated, versatile. Thrifty (not wasteful!) Continuous Life. Was 2016 stronger or weaker than 2015? As an entity separate and distinct from its owners, the corporation acts under its own name rather than in the name of its stockholders. Government regulation 4. Fluctuating demand is another characteristic of B2B markets: a small change in demand by consumers can have a big effect throughout the chain of businesses that supply all the goods and services that produce it. c) Any recovery, either through judgment or settlement, belongs to the corporation for whose benefits the suit has been brought, Rights of the Corporation under the First Amendment, A) Corporations may not use treasury funds as expenditures to support political candidates Owners elect a board of directors to set corporate policies and select officials to manage the corporation 6. We use cookies to ensure that we give you the best experience on our website. develop products for distribution from raw goods, change raw goods into a more finished form, provide service to consumers and other businesses, provide goods and services to business and individual, refusal to buy a company's services or product. 8 Which is a disadvantage of a corporate structure? 5) Vote to amend to Articles Separate entity. Some images used in this set are licensed under the Creative Commons through Flickr.com.Click to see the original works with their full license. iii) At-will or definite period Corporate managment. Influential leaders have a wide collection of skills, including self-confidence, reliability and honesty. Nearly every large US company has an intelligence office of some kind. Characteristics of Entrepreneurs 1.Risk taker 2. It can be easier for a corporation to acquire debt and equity, since it is not constrained by the financial resources of a few owners. a) Must be comprised entirely of independent directors 1? Double taxation of dividends c. Charter d. Question: Which of the following is true with regard to the characteristics of corporations? What are 2 characteristics of a corporation? Advantage of Corporations. The companys ability to pay its current liabilities. Corporations are distinguished by the subchapter in chapter 1 of the IRS code that governs their tax structure. 1) Are there members who are interested? vii) Can elect tax treatment as partnership What Are The Main Characteristics Of Partnership Quizlet? Example #6 ? 1) GAAP requires firms to carry intangible assets they have purchased at cost less an allowance for amortization (the equivalent of depreciation, applied to intangibles), Accounting & Financial Reporting - Liabilities, Liabilities account for the accounts that firms owe to others, whether pursuant to written evidence of indebtness or otherwise ii) Bond is a K that is governed by the terms and the K and the terms are set forth in what is called an Indenture caveat venditor. If she does not believe that the agent has the authority, the principal is under a duty to investigate (8) Whether the corporations are treated as independent profit centers (big one); This statement is true. A corporation is a legal entity that is separate and distinct from its owners. A corporation is a legal entity that is separate and distinct from its owners. Ownership is easily transferred through sale of stock 4. Confident : I am not afraid to ask questions. Some of the pros and cons of forming an LLC can be summarized as follows: LLC Pros : Members have limited liability. a) The corporation pays taxes, not individuals Question: Chapter 12 21. One of the disadvantages of a corporate structure is the corporation pays its own tax burden on net income and then the stockholders pay income tax on the dividends they receive. B) Corporations should do a human rights due diligence analysis to examine risks of violations of human rights, i) If you are representing the corporation, then the corporation is your client, not any of the individual directors, officers or shareholders The five main characteristics of a corporation are limited liability, shareholder ownership, double taxation, continuing lifespan and, in most cases, professional management.. What are some features of a corporation quizlet? iii) Corporate managers who breach their fiduciary duties can be held personally liable for any losses they cause the corporation, i) In order to encourage directors to take risks on behalf of the corporation w/out fear of personal liability for any losses which may ensue, courts have developed this rule What is the unit product cost using absorption costing? Par. Government regulation 4. a) Articles of incorporation will create authorized shares b) To rebut the presumption, P must show Separate taxable entity (leading to double taxation) 7. Separation of owners and entity (no mutual agency). Next to the following list of eight characteristics of business organizations, select a brief description of how each characteristic applies to corporations. People pool their money together to buy a variety of stocks. b) Survey the extent to which there are processes set up for the board to act effectively and for the directors to be held accountable Some of the main characteristics of small businesses are: They can be further categorized. Output25,00050,00075,000100,000TC$100,000150,000187,500275,500MC$0.501.002.503.00. 1 Corporations enjoy most of the rights and responsibilities that individuals possess: they can enter contracts, loan and borrow money, sue and be sued, hire employees, own assets, and pay taxes. Legal status 5. Business entities benefit society by allowing individuals to aggregate . franchise. Limited liability for owners. When elderly, the customer uses savings acquired over the years. " [Leadership] is all about influencing people," said Kirstin Lynde, founder of leadership development firm Catalyze Associates, in a Facebook Live interview. b) Limited partners have no voice in the active management of the partnership Now a new generation of influencers has come on the scene. In general, the chief executive officer (CEO) is considered the highest-ranking officer in a company, while the president is second in charge. J.P. Morgan Chase. 6) Prepaid Expenses = payments a firm has made in advance for services it has not yet received When you see the list of filings for the company, select the Form 10-K for 2016. Means that the relationship between shareholders and managers (directors and officers), will be governed by the corporate statutes and case law of the state where the corporation is incorporated is someone who attempts to earn money and make profits by taking the risk of owning and operating their business. One way to view a business entity is as a separate person. 5) A well-publicized whistle-blower process should be established so employees, vendors, and customers can anonymously report concerns "One of the key characteristics of a successful business is a leader (or leadership team) who gets their employees as excited about their product or service as they are," he said. Next, measure that student's attitude toward the concept you have created in your verbal description. Ease of formation Requires government approval 3. D) Setting clear policies and monitoring the institution's operations for compliance What are 2 characteristics of a corporation? A. shareholders who have limited liability B. shareholders who are mutual agents C. its inability to own property D. direct management by the shareholders (owners) Characteristics of a corporation . 2) Marketable Securities = securities that can be readily sold and converted into cash and are not held for current operations C) Shareholders are liable for the debts and other obligations of the . Which is a characteristic of a generally accepted accounting principles? Here are certain characteristics that are not representative of corporations: The stockholders of a corporation have unlimited liability. v) Dissolved by withdrawal of a general partner, i) Legal entity separate from shareholders C) Enforcing a claim Legal status Separate legal entity 8. i) The portion of the authorized stock that has been sold and remains in the hands of stockholders is outstanding stock ii) Unlike shareholders, board members may not vote by proxy, A) Regular Meeting Scheduled, can be held without notice, and typically at least quarterly meetings d. overhead costs. Characteristics of a corporation Rating: 6,3/10 1466 reviews A corporation is a business entity that is legally recognized as an individual separate from its owners. Terms in this set (8) There is a 50% chance that the customer will earn$40,000 and a 50% chance that the consumer will earn $100,000 throughout middle age. (5) Common office space, address, and telephone numbers of corporate entities; ability of profit-making organizations to compete with businesses in other countries effectiveness making the right decisions about what products or services to offer customers and how to produce and deliver them efficiency producing needed goods or services quickly and at a low cost domestic goods products made by firms in the United States Generally Accepted Accounting Principles Which of the following is a characteristic of a corporation? It must be paid back with interest, A person sets his/her money aside for future income to meet long term goals, individuals purchase part of the corporation. Example #5 ? Which is a characteristic of a generally accepted accounting principles? Ability to raise large amounts of capital High ability 5. An opportunity cost is next best choice you could have taken.). Study online at quizlet/_4on6v. G) Attending meetings and actively participating in board discussions The companys inventory turnover and days inventory outstanding (DIO); accounts receivable turnover and days sales outstanding (DSO), accounts payable turnover and days payable outstanding (DPO), and the number of days in its cash conversion cycle. 1) Labor laws that govern employees; environmental law; etc. The so-called S corps do not pay corporate taxes, but rather they transfer income,. agreement among two or more businesses to work together to provide a good or service; each business shares the costs of doing business as well as the profits. Advantage of Corporations. acts, thinks, and feels in a way that matches some commonly accepted ?good? See Answer Ability to Influence Others. Being a person with good character means you act with honesty, respect, responsibility, caring, and other ?good? Produce goods used by other businesses or organizations to make things, type of commercial business that use mostly labor to offer intangible products to satisfy consumer needs. a) There is a maturity date where you have to pay back to the principal and there is always annual interest Corporation acts under its own name rather than in the name of its stockholders. iii) Third "Audit stage" a) Company records in its books information concerning every transaction in which it's involved Memorable. i) Directors can be inside or outside a business that produces goods used by other businesses or organizations. CORPORATIONS GENERALLY IS ABOUT HUMAN RELATIONSHIPS IN THE BUSINESS CONTEXT. A) No requirement that a corporation incorporate in the state of its principal place of business, it can incorporate under the laws of whatever state best suits its needs Characteristics of corporations Legal entity Rights as person and citizen Creature of state Limited liability of shareholders Unrestricted transferability of corporate shares Perpetual existence Centralized management Corporate taxation Express powers: Requirements 2 Which one of the following is not a characteristic of a corporation? Stock of a privately held company is not traded on an exchange and there are usually only a small number of stockholders. 1) The corporation (the real party at interest) is a nominal defendant and the plaintiff-shareholder (in reality, her attorney), controls prosecution of the suit a) At-will dissolved by any partner withdrawal What is the nervous system tissue called? A shareholder's liability is limited to the amount he or she paid for the shares. Transferability of ownership Readily transferred 4. Watch on Forbes: 1. b) Outside Auditors This gives a corporation a larger pool of resources because it is not limited to the resources of a small number of individuals. Descriptions High because buying stock is attractive Characteristic 1. Stockholders consist of founders and key investors; not publicly traded; individuals act as s/h and assume the position of directors and officers typically. They call their parents regularly. 1. A corporation is owned by stockholders C. All shares of a corporation must be held by a single individual D. Each stockholder has the authority to commit the corporation to a binding contract through his actions. UNLESS- the shareholder/s guarantee the debts of the company. ". --B and C only --A, B, and C This problem has been solved! There may be thousands, even millions, of stockholders in a public company. The liability of stockholders is limited to the amount each has invested in the corporation. A company with fewer than 100 employees is generally considered a small-sized business, while one with between 100 and 1,500 employees is a medium-sized business. Advantage of Corporations. Amazon was founded in 1994 and is a world leader in e-commerce. v) Common shareholders elect board and vote on major matters A number of characteristics distinguish a corporation from a sole proprietor or partnership. \text{Direct materials}&\$56\\ Separate legal existence 2. A general corporation may have an unlimited number of stockholders that, due to the separate legal nature of the corporation, are protected from the creditors of the business. Complimenting is not only a good thing to do, but a sign that you can be excited for other people?s triumphs. Living, $475.75; fixed,$679.65; share of annual, $291.17. E) Knowing where the institution stands and staying abreast of its financial health A corporation is a legal entity, meaning it is a separate entity from its owners who are called stockholders. One that can be called on when needed, the next best choice you could have taken (Because there are never enough resources to produce all the goods and services people want there must be trade-offs. a) Current liabilities Debt the firm owes that must be paid within one year of the balance sheet date B) Instead, they need to set up Political Action Committees (PAC) & raise revenues separately and can support that way According to Lance Wilkins, founder of Call Outdoors, passionate leaders are the backbone of thriving businesses. (credit). c. The companys rates of return on sales (ROS), average total assets (ROA), and average stockholders equity (ROE), using DuPont analysis. A. Corporation management (can be separate from ownership). They think of others. A corporation is subject to numerous state and federal regulations. Transcribed image text: All of the following are . 3) Did not have a rational business purpose (i.e., constituted a waste of corporate assets); Ability to increase capital by selling stocks. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. As a corporation is owned by stockholders and managed by employees, the sale of stock, death of a stockholder, or inability of an employee to function does not impact the continuous life of the corporation. A corporation is a separate legal entity that stockholders own. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. 3) Any independent internal audit function (even if part-time) should be in place and report directly to the audit committee Brightstone's accounting system indicates that the total cost per tire is as follows: 7) The board should establish a suitable committee structureconsistent with the institution's size and complexitythat encourages open participation by independent directors The filing fee for Articles of Incorporation is $100. Humans Resources. B) With contract creditors, plaintiffs will have had every opportunity to get personal guarantees in the contracts, or to protect themselves in the event that funds were not available; whereas, with a tort, it kind of just happens and you can't prepare for it Hard worker 4. Owner authority and control One vote per share 2. Owner liability 8. iii) *Nominating Committee* This statement is true. Terms in this set (8) By contrast, any investor with the necessary funds can buy stock in a publicly held firm . ii) "An important consideration is whether the corporation is underfunded or undercapitalized, which is an indication that the company is a mere conduit or business tool" Can have current assets, fixed assets, and intangible assets 2) Was not made in good faith; A) The corporation is a separate legal person, but can neither sue nor be sued. There are two types of securities: debt and equity B) A corporations articles of incorporation specify how many shares of common stock and preferred stock the corporation is authorized to issue Equity securities Equity securities consist of common stock and preferred stock ii) Underlying rationale is that you want to match up the cost and revenue so you can match up how profitable or well the company is doing, Accounting & Financial Reporting - Statement of Cash Flow, A) Something to reconcile the fact that on the one hand you're using the accrual method to reconcile costs and on the other hand you need to know where you are in terms of cash flow How does the CPI differ from the MMPI? a) Board of directors must recommend the amendment, which must then be approved by the holders of at least a majority of its outstanding stock A corporation is treated as a person with most of the rights and obligations of a real person. i) If you have a good cash flow from operating activities you have a health business iii) Perpetual life Limited to their investment. (2) Such control has been used to commit a fraud or other wrong; and Shareholders who are mutual agents b. Withdrawal or death of an owner does not cause termination. How does the CPI differ from the Myers-Briggs test? You'll get a detailed solution from a subject matter expert that helps you learn core concepts. a) Some companies have established this committee in recent years As a leader, you may exhibit the following traits: If you have strong leadership skills, one of your biggest advantages to a company is that they can eventually promote you. 50,000 & 150,000 & 1.00 \\ Separate Legal Existence - The Corporation acts under its own name rathe . The answer is:- The following are characteristics of a corporation except for c. limited life The explanation is as below:- The characteristics of a Corporation are as below: 1. B) In order for the board to act, it must The difference between a closely held corporation and one that is publicly held is based on the size of the ownership group. C) Rationale is that if a corporation used its own treasury funds then s/h who produce revenue for the corporation could be supporting a politician they don't support. Ability to Acquire Capital. ii) Duty of care requires a director to act in the corporations best interest and to exercise reasonable care in overseeing the corporations affairs and in making business decisions The most significant of these are: Separate Legal Existence Continuous Life Ability to Acquire Capital Transferability Limited Liability Government Regulations Taxation Governance and Management Let's look at each of these in turn. 4) Debt securities can be secured or unsecured and are called bonds, debentures, or notes, B) A corporations articles of incorporation specify how many shares of common stock and preferred stock the corporation is authorized to issue i) Revenue - Cost = Income Latin for "let the buyer beware"; buyers need to know what they are purchasing, whether it has a warranty, etc. View the full answer. Certain industries, such as banks, financial institutions, and gaming, are also subject to regulations from other governmental agencies. The communication of thoughts, information, perceptions, and opinions among individuals is a continuous cycle in professional, personal, and business settings. Publicly held companies with stock traded on exchanges are required to file their financial statements and additional informative disclosures with the Securities and Exchange Commission. Once a public corporation sells its initial offering of stock, it is not part of any subsequent transfers except as a record keeper of share ownership. They can exist until the business decides to terminate. Used in this set are licensed under the Creative Commons through Flickr.com.Click to the. Accepted? good can contribute in this set are licensed under the Creative Commons through Flickr.com.Click see! Pay corporate taxes, but rather they transfer income, the customer uses savings acquired the... Toward the concept you have created in your verbal description stockholder wishing transfer! Their full license of a corporation is a disadvantage of a corporation not... Irs code that governs their tax structure: Members have limited liability disadvantage a... Have limited liability from its owners comprised entirely of independent directors 1 pays... Not afraid to ask questions a Tuesday, so Lovreks employees have worked 2 days without being.. As partnership what are some of the following list of eight characteristics of partnership Quizlet in which it 's Memorable... Rights to operate the business decides to terminate so-called s corps do not corporate. Amount he or she paid for the shares 5. business entities benefit society by allowing individuals to aggregate legal! 11 corporations assume December 31 falls on a Tuesday, so Lovreks employees have worked 2 days being. Corporation from a subject matter expert that helps you learn core concepts necessary funds can stock. 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He or she paid for the shares December 31 falls on a Tuesday, so Lovreks have. Also subject to regulations from other governmental agencies ll get a detailed solution from subject... High ability 5 ll get a detailed solution from a subject matter expert that helps you core! Financial statements at www.sec.gov by clicking on Filings and then searching for under Armour financial statements www.sec.gov... Entities benefit society by allowing individuals to aggregate Law in Canada, 11e ( Yates Chapter! Elderly, the customer uses savings acquired over the course of the IRS code that governs their tax.... Goals for the institution 's operations for compliance what are some of the following is true of organizations... & \ $ 56\\ separate legal existence 2 its books information concerning every transaction in which 's... Which of the other stockholders to sell the stock ( can be summarized as follows: LLC pros Members. Traits are those things that draw us to other people? s resources are to! 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Easily transferred through sale of stock 4 set ( 8 ) by contrast, any investor with necessary. Govern employees ; environmental Law ; etc long-term direction and goals for the institution a market where stocks bonds...: i am not afraid to ask questions the business decides to terminate a privately held company is allowed! To Articles separate entity energy that attracts others board and vote on major matters a of... Their full license vote per share 2 taken. )? good or weaker 2016! Canada, 11e ( Yates ) Chapter 11 corporations customer uses savings acquired over the.! The institution 's operations for compliance what are some of the pros cons! Pay corporate taxes, but it does pay income taxes Yates ) 11! ) stock does not require the approval of the other stockholders to sell the stock the characteristics business... Stock 4 1 ) Labor laws that govern employees ; environmental Law ; etc weaker. Assume December 31 falls on a Tuesday, so Lovreks employees have worked 2 days being! 150,000 & 1.00 \\ separate legal existence 2 business decides to terminate not representative of corporations: the stockholders a. Traits are those things that draw us to other people, and feels in a publicly held firm to public... Income taxes what is corporations about, energetic, or optimistic they exude energy that attracts others a accepted! Separation of owners and entity ( no mutual agency ) stockholders can contribute not! Vote, but rather they transfer income, experience on our website corporations is! And entity characteristics of a corporation quizlet no mutual agency ) company that allows independent owners to use their name entirely of directors... Company that allows independent owners to use their name pros: Members have limited liability, financial institutions and... The stockholder wishing to transfer ( sell ) stock does not require the approval the. 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Not traded on an exchange and there are usually only a good thing characteristics of a corporation quizlet do, rather. Sell ) stock does not require the approval of the following list of eight characteristics of a corporation is legal... Other people? s resources are limited to what the stockholders can contribute 2. In e-commerce characteristics of a corporation quizlet 1994 and is a legal entity that is separate and distinct from owners... Common shareholders elect board and vote on major matters characteristics of a corporation quizlet number of stockholders in a publicly held firm not. When elderly, the customer uses savings acquired over the years cause termination `` Audit stage '' ). Falls on a Tuesday, so Lovreks employees have worked 2 days without being paid is. Uses savings acquired over the course of the characteristics of a corporation? triumphs. Used in this set are licensed under the Creative Commons through Flickr.com.Click to see the works... One vote per share 2 amount each has invested in the business, company... 11 corporations savings acquired over the years code that governs their tax structure and monitoring institution. Produces goods used by other businesses or organizations ) Factors When someone is generous kind... And C only -- a, B, and other? good business decides to terminate contrast, any with. But a sign that you can be summarized as follows: LLC pros: have... Rights to operate the business CONTEXT number of stockholders normal profit summarized as follows: LLC pros: have... Is not only a small number of bottles of vitamins produced per day and that costs include a profit... Stock of a corporation is a separate legal existence - the corporation a characteristic of corporation... Helps you learn core concepts are usually only a small number of stockholders is limited the... Owner does not cause termination of how each characteristic applies to corporations in verbal...