How does a corporation raise capital (earn money)?
Business profits and selling shares of the business in the form of stocks
15
A ____ is a certificated that declares partial ownership in a company. It may increase or decrease in value any time and can be sold.
Stock
15
What management position deals with financial data and performance?
CFO/Chief Financial Officer
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"Bonus" money paid to stock shareholders if the company has extra profit at the end of the year. Similar to a co-op's patronage payments
Dividends
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This type of corporation does not pay tax itself; all company income, losses, and other finances pass through the shareholders for tax reasons. Business profit/loss is filed on individual tax returns
S corporation
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This type of corporation has publicly traded stock. The corporation pays tax on its income and dividends to shareholders.
C corporation
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The purpose of a _______ in a corporation is to work with high-level executives and develop business strategies as a group.
Board of directors
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How is a board of directors generally chosen?
Elected by shareholders (people who own stock)
15
What management position deals with marketing, sales, production, and personnel management?
COO/Chief Operating Officer
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What management position is responsible for the entire corporation and reports to the board & shareholders? ("head honcho" of the company)
CEO/Chief Executive Officer
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A corporation unveils a new product or service that increases demand from customers. Would this likely make the stock price go up or down?
Up
15
If you own stock in a corporation, do you have any say in the business or management decisions?
No
15
If a corporation goes bankrupt, what happens to the stock prices?
They will go down due to shareholders selling them and the company having no money to pay dividends
15
If a major stockholder of a corporation dies, what happens to those stocks?
They are transferred or sold to other shareholders. The corporation remains in business
15
If you buy stock in a corporation and it goes bankrupt, how much money would you lose?
Only the amount of money you originally paid for the stock
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What might management and stockholders look for when electing a board of directors?
Past management/business experience, expertise in a certain area, diversity of gender/race/age/location/etc.
