If you own stock in a corporation, do you have any say in the business or management decisions?
No
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
"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
What management position deals with financial data and performance?
CFO/Chief Financial Officer
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
How is a board of directors generally chosen?
Elected by shareholders (people who own stock)
What management position is responsible for the entire corporation and reports to the board & shareholders? ("head honcho" of the company)
CEO/Chief Executive Officer
The purpose of a _______ in a corporation is to work with high-level executives and develop business strategies as a group.
Board of directors
What management position deals with marketing, sales, production, and personnel management?
COO/Chief Operating Officer
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.
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
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
How does a corporation raise capital (earn money)?
Business profits and selling shares of the business in the form of stocks
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
This type of corporation has publicly traded stock. The corporation pays tax on its income and dividends to shareholders.
C corporation
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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