Term
| Fiduciary Duties consist of______________ and _________________. |
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Definition
Duty of Care
Duty of Loyalty |
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Term
| Duty to exercise reasonable supervision and duty to make informed decisions are components of ______________? |
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Definition
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Term
| What is a key advantage of corporations? |
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Definition
| limited liability of owners (shareholders) |
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Term
| What is a key disadvatage of corporations? |
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Definition
| potential to pierce the corporate veil and hold shareholders liable |
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Term
| True or False corporations can be taxed twice? |
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Definition
True: corporate taxes can be taxes twice, first to the corporation, then to the shareholders via dividends
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Term
| Under this doctrine a corporationis liable for the torts committed by its agents or officers within the course and scope of their employment |
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Definition
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Term
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Definition
| entity in which shares are held by few shareholders, there is informal management, and restriction on transfer of sale and shares |
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Term
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Definition
| Avoid federal taxes under Subchapter S; no double taxation because only dividends are taxed to the shareholders as income |
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Term
| What are the two steps to forming a corporation? |
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Definition
Preliminary and Promotional Activities
Legal Process of Incorporation |
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Term
| What are the steps to forming and incorporation? |
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Definition
Select state
Select name
Prepare articles of incorporation
File Articles with state |
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Term
| What is the Alter Ego theory? |
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Definition
| corporation serves as alter ego for ajority shareholder |
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