Corporate Governance - Forms of Business Organization
9 important questions on Corporate Governance - Forms of Business Organization
Where is corporate governance concerned with?
What is a partnership?
-General partnership: all partners share gains or losses and have unlimited liability for all partners
- Limited partnership: one or more general partners will run the business and have unlimited liabilities. One or more limited partners that will not actively participate in business and liability is limited.
What is a partnership agreement?
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The primary disadvantages of sole proprietorships and partnerships as forms of business organization are:
2. Limited life of the business
3. Difficulty of transferring ownership
What is a Corporation?
What does forming a corporation involves?
For legal purposes the corporation is a 'resident' of that country.
2. Preparing a memorandum of association: rules describing how the corporation regulates its existence (how directors are collected) can be amended or extended form time to time by shareholders
What is the difference between single-tier board and two-tier board countries?
Two-tier: two boards. The executive board manages the day-to-day operations of the
company, and they report to the supervisory board which monitors theirperformance
What are the disadvantages of a cooperation?
Bc cooperation is a legal person and bc money is paid to shareholders in form of dividends against the income of those shareholders.
A corporate organization has different names around the world, what are these names?
2. public limited companies
3. limited liability companies
4. depending on the specific nature of the firm and the country of origin
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