what is a Corporation?

What is a corporation primarily described as?

• A financial institution

• A legal entity separate from its owners

• A partnership agreement

• A government agency

What is one of the most important characteristics of a corporation?

• Tax exemption

• Limited liability of owners

• Unlimited liability

• Direct democracy

Which entity regulates publicly-traded corporations in the U.S.?

• Internal Revenue Service (IRS)

• Securities and Exchange Commission (SEC)

• Federal Reserve System (the Fed)

• Department of Justice (DOJ)

What is the primary responsibility of shareholders in a corporation?

• Day-to-day management

• Electing the board of directors

• Issuing dividends

• Filing tax returns

What is the main characteristic of a closed corporation?

• It has unlimited liability

• It is regulated by federal law

• It has a single shareholder or a few shareholders (not publicly traded)

• It is publicly traded

How are members of the board of directors typically chosen?

• By the CEO

• By the shareholders

• By the government

• By the Secretary of State

What is the primary duty of the Chairman of the board of directors?

• Maximizing shareholder wealth

• Running day-to-day operations

• Setting general direction and goals

• Act as the intermediary between the Board and the managing officers

What is the primary role of the CFO?

• Handling technology requirements

• Overseeing daily operations

• Handling financial matters

• Maintaining corporate records

What is one of the responsibities of the Chairman of the Board?

• Runs day-to-day operations

• Represents shareholders in legal matters

• Sets the general direction and goals with advice and consent of the Board

• Assists the Chief Financial Officer

What is the main advantage of incorporating a business?

• Unlimited liability

• Limited liability

• Shared responsibility

• Tax exemption