Match each corporate characteristic 1 through 8 with the description that best relates to it.CharacteristicDescriptions1. Transferability of ownership2. Ability to raise large capital amounts3. Duration of lifeMore severe than partnerships and proprietorships4. Legal statusReadily transferred5. Ease of formationRequires government approval6. Government regulationShareholders elect board of directors7. Mutual agencyStockholders cannot bind corporation to contracts8. Owner authority and control Match each corporate characteristic 1 through 8 with the description that best relates to it.CharacteristicDescriptions1. Transferability of ownership2. Ability to raise large capital amounts3. Duration of life4. Legal statusEntity with similar rights as individual5. Ease of formationHigh because buying stock is attractive6. Government regulationIndefinite7. Mutual agencyMore severe than partnerships and proprietorships8. Owner authority and controlTT TT O

Match each corporate characteristic 1 through 8 with the description that best relates to it. Characteristic Descriptions 1. Transferability of ownership 2. Ability to raise large capital amounts 3. Duration of life More severe than partnerships and proprietorships 4. Legal status Readily transferred 5. Ease of formation Requires government approval 6. Government regulation Shareholders elect board of directors 7. Mutual agency Stockholders cannot bind corporation to contracts 8. Owner authority and control T T TTI

Match each corporate characteristic 1 through 8 with the description that best relates to it. Characteristic Descriptions 1. Transferability of ownership 2. Ability to raise large capital amounts 3. Duration of life More severe than partnerships and proprietorships 4. Legal status Readily transferred 5. Ease of formation Requires government approval 6. Government regulation Shareholders elect board of directors 7. Mutual agency Stockholders cannot bind corporation to contracts 8. Owner authority and control T T TTI

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter1: An Overview Of Financial Management And The Financial Environment

Section: Chapter Questions

Problem 1Q

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Question: Define and discuss each of the following by providing at least 2 practical examples: Limited Partnership; Limited Liability partnership; Professional corporation? A friend asked you to reveal important financial information of the company, being a finance manager of the company what would you do? Justify by considering ethics in finance. Describe mechanisms that motivate managers to act in stockholders’ best interests, and to overcome agency problem?
Question 1: Define and discuss each of the following by providing at least 2 practical examples: a) Limited Partnership; Limited Liability partnership; Professional corporation? b) A friend asked you to reveal important financial information of the company,being a finance manager of the company what would you do? Justify by considering ethics in finance. c) Describemechanisms that motivate managers to act in stockholders’ best interests, and to overcome agency problem?
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