,What is GAAP?
The set of accounting rules established by the FASB
What is the purpose of the Financial Accounting Standards Board
(FASB)?
The FASB is the designated organization for establishing standards for
financial accounting that govern the preparation of financial reports.
Which group oversees the FASB in the making of U.S. financial reporting
standards?
SEC
The SEC requires specific reports to be filed by each company that is
traded on a U.S. stock exchange. What is contained in SEC Form 8-K?
Timely disclosure of significant corporate events
The shareholders of a company elect the company's
Board of Directors, usually 7-12 individuals who provide oversight of
the company's executives and guidance and help to the executives.
,The board of directors hires the CEO (the top officer in a company;
sometimes called the president). The CEO, with the board's approval,
hires
the vice presidents and other executives of the company. The CEO and
their direct reports comprise the top management team of the
company.
What is a corporation?
A corporation is an organization that combines resources, skills,
capital, labor, and knowledge to provide goods and services to a
market in pursuit of profit. It is a legal entity that is separate and
distinct from its owners.
Corporations pay separate ___ and have separate ___ status taxes
and legal
One disadvantage of a corporation is that its
profit is taxed to the corporation when earned and then is taxed to the
shareholders when distributed as dividends. This creates a double tax.
The corporation does not get a tax deduction when it distributes
dividends to shareholders.
, Shareholders cannot deduct any corporate
losses on their personal tax returns. several
advantages of corporations.
The greatest advantage of corporations, however, is their ability to raise
large sums of money for critical investments by borrowing from
financial institutions or issuing shares of stock. This ability to raise
large sums of money gives them a tremendous advantage in the
business world.
What is an advantage of structuring a business as a corporation?
Ability to operate with the legal rights of an individual
What is the primary responsibility of a corporation's board of directors?
To provide oversight of the company’s executives
What was significant about the years 2007 and 2008 that led to the
passage of the Dodd-Frank Act?
They represented the worst financial crisis since the Great Depression.
The set of accounting rules established by the FASB
What is the purpose of the Financial Accounting Standards Board
(FASB)?
The FASB is the designated organization for establishing standards for
financial accounting that govern the preparation of financial reports.
Which group oversees the FASB in the making of U.S. financial reporting
standards?
SEC
The SEC requires specific reports to be filed by each company that is
traded on a U.S. stock exchange. What is contained in SEC Form 8-K?
Timely disclosure of significant corporate events
The shareholders of a company elect the company's
Board of Directors, usually 7-12 individuals who provide oversight of
the company's executives and guidance and help to the executives.
,The board of directors hires the CEO (the top officer in a company;
sometimes called the president). The CEO, with the board's approval,
hires
the vice presidents and other executives of the company. The CEO and
their direct reports comprise the top management team of the
company.
What is a corporation?
A corporation is an organization that combines resources, skills,
capital, labor, and knowledge to provide goods and services to a
market in pursuit of profit. It is a legal entity that is separate and
distinct from its owners.
Corporations pay separate ___ and have separate ___ status taxes
and legal
One disadvantage of a corporation is that its
profit is taxed to the corporation when earned and then is taxed to the
shareholders when distributed as dividends. This creates a double tax.
The corporation does not get a tax deduction when it distributes
dividends to shareholders.
, Shareholders cannot deduct any corporate
losses on their personal tax returns. several
advantages of corporations.
The greatest advantage of corporations, however, is their ability to raise
large sums of money for critical investments by borrowing from
financial institutions or issuing shares of stock. This ability to raise
large sums of money gives them a tremendous advantage in the
business world.
What is an advantage of structuring a business as a corporation?
Ability to operate with the legal rights of an individual
What is the primary responsibility of a corporation's board of directors?
To provide oversight of the company’s executives
What was significant about the years 2007 and 2008 that led to the
passage of the Dodd-Frank Act?
They represented the worst financial crisis since the Great Depression.
