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Describe the stockholders liability to creditors of a corporation?
Wiki User
∙ 13y ago
A corporation's creditors usually do not be past the assets of the corporation to satisfy their claims. The most a stockholder can lose financially is the amount he or she invested.
Wiki User
∙ 13y ago
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How can you describe a current liability turnover ratio?
shows how your short term liabilities are able to generate income
If the effect of the debit portion of an adjusting entry is to increase the balance of an asset account describe the effect of the credit portion of the entry?
increase the balance of the liability account :)
What does liability mean?
A limitation (a cap) of liability clause is a contractual provision that restricts the amount of damages a client can recover from a company. Uncapped liability is a liability without a limit.
Is net profit an asset or liability?
In a way profit could be considered an asset but its a stretch. Profit is term used to describe the earnings left over after you subtract the expenses related to the earning of that profit. The retained earnings would actually be the asset. The term profit is just a way to tell if your business is making money (or profitable) and doesn't really fall into the asset category. You will not see profits on a balance sheet rather you will see earnings.
What are the distinguishing features of managerial accounting?
How would you describe the difference between financial and managerial accounting? First, the primary users of reports in financial accounting is external users: stockholders, creditors, and regulators. The primary users of managerial accounting is internal users: officers and managers. Second, the types and frequency of reports for financial accounting uses financial statements and they are quarterly and annually. Managerial accounting uses internal reports and as frequently as needed. Third, the purpose of reports for financial accounting is general-purpose and managerial accounting is special-purpose for specific decisions. Fourth, content of reports for financial accounting is limited to double-entry accounting and cost data, highly aggregated (condensed), pertains to business as a whole, and generally accepted accounting principles. Managerial accounting is extended beyond double-entry accounting to any relevant data, very detailed, pertains to subunits of the business, and standard is relevance to decisions. Last, financial accounting verification process is audit by CPA and managerial accounting verification process is no independent audits.
Why might it be important to structure your business as a C corporation even if you are the only person running the business?
Why might it be important to structureyour business as a c-corporation, even if you are the only person running the business? Describe a corporation's organizational structure. what are the roles of the various groups within the organizational structure?
How would you describe a professional corporation?
involve incorporation by persons engaged in professional practice, such as medical doctors, lawyers, and architects. They are granted limited liability against claims from their clients, except for malpractice.
Describe 3 types of business organisation?
It is hard to answer these kind of vague questions, but I will try. The types of businesses include: Sole proprietor Partnership Limited Liability Corporation, ( LLC ) Corporation, ( Inc. )
Which of these does not describe a private corporation?
shares or traded on exchange
Another word to describe a business or company?
Corporation. Enterprise.
What are the difference between De facto corporation and corporation by estoppel?
De facto corporation and corporation by estoppel are both terms that are used by courts to describe circumstances in which a business organization that has failed to become a de jure corporation (a corporation by law) will nonetheless be treated as a corporation, thereby shielding shareholders from liability. In order for a de facto corporation to be created, there must have been a good faith attempt to comply with the statutes to establish a corporation by the intended incorporators. For example, if the articles of incorporation were mailed to the wrong office, addressed to the wrong person, or lost in the mail. There must also have been some act on the corporation's behalf by its purported officers or agents. If both of these requirements are met, then the business will be treated as a corporation for all purposes, except with respect to acts by state itself. However, most states will not apply this doctrine to protect a person who was aware that the incorporation effort was defective at the time that they purported to act on behalf of the corporation. Corporation by estoppel applies against someone who deals with a business as if it were a corporation, even if there was no good faith effort by the business to incorporate. The person doing business with such an entity may later be estopped from arguing that it is not in fact a corporation in an attempt to reach the assets of the incorporators. For the same reason, defendants who had acted as a corporation will be estopped from denying liability as a corporation when sued by a plaintiff who had relied on the defendant's corporate form when dealing with the defendant
What is the term used to describe a market that is dominant by a single corporation or entity?
Monopoly
What is the term used to describe a market that is dominated by a single corporation or entity?
Monopoly
Importance of financial statements for creditors?
Importance of Financial statements are declarations of information in financial terms about an enterprise that are believed to be fair and accurate. They describe certain attributes of the enterprise that are important for decision makers, particularly investors (owners) and creditors.
Purchase General Liability Insurance?
form_title=Purchase General Liability Insurance form_header=Protect yourself and your business from accidents with general liability insurance. Describe the business and/or property needing insurance:=_ Have you had this product in the past?= () Yes () No How soon do you need this product?=_
How can you describe a current liability turnover ratio?
shows how your short term liabilities are able to generate income
What would best describe the insurer's liability for losses arising from military service?
The insurers's liability may be reduced or excluded. The provision on war, military and aviation risk allows the insurer to reduce or exclude liability for losses resulting from war, military or naval service, and aviation.
