Corporation Theory

What are the characteristics of a corporation?

• Seperate legal entity

• Perpetual succession

• Mutual agency

• Limited liability

A Corporation business organization is registered under...

• Partnership Act 1961

• Companies Act 2016

• Accountants Act 1967

• Corporations Act 2016

What are the elements of a corporation?

• Assets & Liability

• Assets, Liability, Owners Equity

• Public & Private Companies

Example of Public Companies :

• Telekom Malaysia

• Maybank

• Public Bank

• IKEA

What is Debenture?

Interest on Debentures will be recorded in....

• Statement of Financial Position

• Statement of Profit and Loss

What are the current liabilities of a corporation other than accounts payable and bank overdraft?

• Accrued Rent Expense

• Accrued Debenture Interest

• Accrued Audit Fees

• Prepaid Insurance

Shareholders run the business

• TRUE

• FALSE

Debenture is also known as....

• Loan Stock

• Mortgage loan

• Loan Capital

• Loan Shark

Example of preliminary or formation costs that the corporation has to pay if it wishes to have a provision other than stated in Act :

• Lawyer's fees

• Registration fees

• Legal fees

• Director's Remuneration