Formation of Corporations and Stocks Essay

* Why does a comp whatsoever charter to form as a mountain? What atomic number 18 the steps demand to become a corporation? What atomic number 18 the advantages and disadvantages of the corporate form of doing pedigree? Corporations argon created in order to separate the businesses finances from the persons individual finances so that they can protect themselves financially. The advantages of forming a corporation are that the business can obtain the credibility so that consumers are more comfortable. Since consumers normally prefers to do business with a corporation. Also by forming a corporation the person protects their assets and name by forming a corporation. The disadvantages are that the process is lengthy and pricey. Also corporations often end up salaried more in taxes. Corporations are also monitored very closely and must be in compliance with several entities.* Why is favored root referred to as preferred? What are some of the features added to preferred run tha t bring forth it more attractive to investors? Would you call for preferred stock or communal stock as an investment? Why? Preferred stock is considered preferred because it has dividend preference over common stock. Preferred stockholders pull in the right to meet dividends before common stockholders. The per share dividend amount is stated as a percentage of the preferred stocks per value or as a stipulate amount. Preferred stockholders must ne paid their annual dividend plus any dividends in arrears before common stockholders receive any dividends. I would select referred stock over common stock because I want to put up paid as quickly as possible.* What are the different types of dividends corporations whitethorn issue? When should a corporation founder dividends? Do you prefer a stock dividend or a cash dividend? Why There are four types of dividends 1. cash dividends, 2. property dividends, 3. scrip (note), and 4. stock dividends. A corporation should pay dividends when it has retained earning, adequate cash, and a declaration of dividends. I would prefer a cash dividend. If the corporation issues stock, they are not having to spend actual cash. I want to be reassured that the business actually has my money. I have seen it too many times where huge corporations lie and cheat on paper. I also do not really like the stock market and never have been good at buying, selling, or owning stock.