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Corporations and Life

If you invest in a publicly-traded corporation, by buying stock in the form of shares or membership units, you are essentially becoming a shareholder. Since the stock marketis volatile, subject to boom and bust cycles, you are placing your money at risk - you may profit, take a great loss or both. Regardless, becoming a shareholder of a corporation will affect your wallet, whether positively or negatively, which in turn will affect your lifestyle, retirement, health, marriage and so on.

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Q: How do corporations influence other aspects of life?
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Does limited life apply to corporations?

NO. Request reference to the link indicated. 'The legal "person" status of corporations gives the business perpetual life; deaths of officials or stockholders do not alter the corporation's structure. "


What aspects do some find problematic in enforcing the guidelines?

There are frequently specific real-life situations of "bad fit". This is where the real situation is very different from the environment assumed at the time the guideline was written. There are other situations where following the guideline would produce unfair, stupid, or otherwise undesirable results.


Why bank established as corporation?

Banks are established as corporations because corporation is formed by number of persons who pool in their resources to enter business for profit. The methods of financing available to such type of organization. The sale of stock and bonds can raise a greater amount of capital which is needed to undertake the business with multifarious functions. Banks, which by their very nature, invest into large amounts of capital. Furthermore, loans are given out for long durations and only an entity with a long tenure could be beneficial in such a case. Corporations then meets this test because of its perpetual life.


What are the advantages and disadvantages of the corporation as a form of business organization?

Advanatages: Limited Liability, Ease of transferability, ability to raise capital, unlimited life (perpetual lifetimes) Certain expenses are tax deductible Disadvantages: Double Taxation, Forming a corporation costs more, States have higher fees, more state and federal regulations and oversight


Meaning of life insurance?

the meaning of life insurance is giving a husband or wife a chance to murder the other for the money

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