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Q: What disadvantages does incorporation give to shareholders and to the company?
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What is the definition of dividend?

In finance, the word "dividend" refers to a portion of money that is paid at regular individuals by a company to its shareholders. In this way, the shareholders gain a piece of the company's profits.


Give a word institutional in a sentence?

The company also holds meetings with its major institutional shareholders to discuss the company's operations.


Importance of profit maximization for a public limited company?

Profit maximisation let the run business perfectly and better uses of resources or to pay dividend to the shareholders however also to expand their business to attract more new shareholders or give shareholder to reinvest in their company.


Can you give me a sentence that uses incorporation?

Sure. The word incorporation starts with the letter i.


What do articles of incorporation generally give an organization?

Articles of incorporation give structure to an organization. They help the organizations function properly.


What advantages does incorporation give to shareholders and company?

The incorporation of a company has many tax and legal effects on the business. Furthermore, incorporation of a company requires the business to adhere to certain legalities in order to maintain its corporate status. Incorporation of a company may also have a significant impact on the company's ability to attract investors.LiabilityOne of the major effects incorporation has on a company is in the area of limited liability. When a company incorporates, it becomes a separate legal entity from the shareholders of the company. The shareholders of an incorporated company have limited liability for the company's debts and other obligations that may arise while running the business. As explained on the All Business website (http://www.allbusiness.com/), incorporating a company eliminates the possibility that a shareholder's personal assets can be used to satisfy corporate liabilities and obligations.TaxesIncorporating a company means the business will be responsible for its own taxes. In a corporation, the company's taxes are paid separately from those of the shareholders unless a company incorporates as a subchapter S corporation. Shareholders of a subchapter S corporation may pass their share of company profits to their individual or joint tax returns. However, a regular corporation, also known as a subchapter C corporation, may be subject to double taxation. According to the All Business website, an incorporated company must pay taxes on all profits at the corporation's applicable tax rate. Shareholders of an incorporated company must pay taxes on all corporate profits received in the form of dividends. Incorporating a company allows the owners to capitalize on certain tax advantages such as tax-deductible health and life insurance plans provided to the company's employees.StockIncorporating a company allows you to issue stock as a mechanism to raise operating capital and attract investors. Incorporating a company may also allow you to attract key employees by using employee stock options as an incentive. In some cases, incorporating a company allows the business to issue more than one class of stock, which further increases the corporation's ability to attract investors. Each class of stock may have its own associated profit and voting privileges.FormalitiesIncorporating a company means there will be certain state-imposed formalities that must be followed. For example, incorporated companies must hold at least one annual meeting. Depending on the state of incorporation, you may be required to hold the corporate meeting in the state where the business was formed. Furthermore, incorporated companies are required to record corporate minutes. Corporate minutes record information such as the manner in which decisions were reached, as well as election results for corporate directors and officers.ExistenceIncorporating a company may allow it to exist well beyond the life of its initial owners because an incorporated company's existence doesn't depend on the corporation's ownership.


Where can I find a website that will give me a low incorporation fee for my web-based company?

Actually, there is a site called incplan.net that offers very low incorporation fees as long as you're in the United States. You should check there. Automated Incorporating is a great site. They have really low incorporation fees.


How do you measure shareholder value in banks?

If you are talking about a shareholders worth in the company, it can be measured using the give formula: Book value per share= Shareholder's funds / Number of shares Shareholders funds will include the retained earnings, general reserve, capital contribution of shareholders and exclude deferred expenditure of the business.


How do shareholders vote in a publicly-traded company?

The companies are required by law to send ballots to the stockholders on matters that require the vote of the stockholders. The stockholder may choose to give their proxy to the management or a director or officer of the company.


Give 5 reasons for preparing financial statements?

To know the profitability of the company. To satisfy the shareholders with their investment in the company. In case of financial sourcing, these statements can be of relevance for the company for instance, banks will need to look at its stand in order to be certain and convinced that their money will be repaid.


Will managers always make decisions that will be in the best interests of shareholders?

No. Their pay arrangement can give you a good indication as to how well they will act on the shareholders' behalf.


What is maximazation of shareholders wealth and profit?

The maximization of a shareholder's profit is at a point where the value of share is maximum and dividend on the share paid by the company is also very high but only few successful companies give such profit maximization to their shareholders and the listings of such companies can be found out on activetrader-links.com for investment purposes.