Formation of Corporations and Stocks Essay

* Why does a company choose to organize as a corporation? What are the stairss required to go a corporation? What are the advantages and disadvantages of the corporate signifier of making concern? Corporations are created in order to divide the concerns fundss from the person’s single fundss so that they can protect themselves financially. The advantages of organizing a corporation are that the concern can obtain the credibleness so that consumers are more comfy. Since consumers usually prefers to make concern with a corporation. Besides by organizing a corporation the individual protects their assets and name by organizing a corporation. The disadvantages are that the procedure is drawn-out and pricey. Besides corporations frequently end up paying more in revenue enhancements. Corporations are besides monitored really closely and must be in conformity with several entities.

* Why is preferable stock referred to as preferred? What are some of the characteristics added to preferred stock that make it more attractive to investors? Would you choose preferable stock or common stock as an investing? Why? Preferable stock is considered preferable because it has dividend penchant over common stock. Preferable shareholders have the right to have dividends before common shareholders. The per portion dividend sum is stated as a per centum of the preferable stocks per value or as a specified sum. Preferable shareholders must ne paid their one-year dividend plus any dividends in arrears before common shareholders receive any dividends. I would choose referred stock over common stock because I want to acquire paid every bit rapidly as possible.

* What are the different types of dividends corporations may publish? When should a corporation wage dividends? Do you prefer a stock dividend or a hard currency dividend? Why There are four types of dividends: 1. hard currency dividends. 2. belongings dividends. 3. scrip ( note ) . and 4. stock dividends. A corporation should pay dividends when it has retained gaining. equal hard currency. and a declaration of dividends. I would prefer a hard currency dividend. If the corporation issues stock. they are non holding to pass existent hard currency. I want to be reassured that the concern really has my money. I have seen it excessively many times where immense corporations lie and cheat on paper. I besides do non truly like the stock market and ne’er have been good at purchasing. merchandising. or having stock.