Answered: What if half of the voting stock is…

What if half of the voting stock is owned by another corporation which is not a close corporation, what kind of corporation will it be?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter13: Choice Of Business Entity—general Tax And Nontax Factors/formation

Section: Chapter Questions

Problem 7DQ

See similar textbooks

Related questions

Q: What are the advantages if any of being a privately held company?

A: A privately held company is a company which is not controlled by Government. These are companies…

Q: Why would a corporation have multiple stock share classes? What are your thoughts?

A: Multiple stock share class means division of shares into different classes based on : i) Voting…

Q: For a Corporation, is it better to maintain a minority interest in an investment, or own enough…

A: A corporation's ultimate owners are its stockholders. They have the power to elect directors, vote…

Q: Which of the following is not among the basic rights of a shareholder? To share in the corporate…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Should a corporation issue common stock or preferred stock and why?

A: Few companies offer both preferred and common shares. Most companies, on the other hand, only issue…

Q: Which of the following reduces a shareholder's S corporation stock basis?

A: S corporation is the corporation which has been started by the shareholders of the company and it…

Q: Is it true or false that corporations muse issue common stock, but may or may not decide to issue…

A: It is the decision taken by board of directors whether to issue preference shares/stock.

Q: Which account cannot be used if a corporation has only one class of shares? a. Preference shares…

A: When the company sells its share in order to accumulate capital such amount is called share capital.…

Q: What is a corporation? Why might founders have chosen to form a corporation rather than a…

A: A corporation is a legal form of business in which shareholders are the owners and corporation has…

Q: Tristan is thinking about purchasing stock in a corporation. Specifically, Tristan has asked you to…

A: The answer:

Q: Is it possible for a nonstock and stock corporation to merge? What happens with their share and…

A: A corporation can be referred to as an organization which is incorporated for the purpose of…

Q: True or false Corporations are legal entities separate from their owners and offer the…

A: 1. Corporation's main advantage is that the entity is separate from the owners. Hence the liability…

Q: Should the qualifications of the board of directors play a role in your decision whether to buy the…

A: An organization's total capital is bifurcated into many units. Each unit represents ownership in the…

Q: It is frequently stated that the one purpose of the preemptive right is to allow individuals to…

A: The importance of controlling for the average stockholder of a firm that has its shares traded on…

Q: How is book value per share computed for a corporation with no preferred stock? What is the main…

A: Book value per share with no preferred stock is computed by dividing the stockholders equity…

Q: Is there a limit to a number of corporation that can enter into a JV?

A: Joint ventures (JV) can be defined as a form of business organization under which two or more…

Q: Is it true or false that corporations muse issue common stock, but may or may not decide to issue…

A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…

Q: Which of the following is not a characteristic of the commonstock of a large, publicly owned…

A: When a corporation issues stock to persons, then these are known as owners or shareholders of the…

Q: What advantages does a company achieve when it possesses significant influence over another company…

A: A CONTROLLING INTEREST OCCURS WHEN A SHAREHOLDER HOLDS THE MAJORITY OF A COMPANY'S OUTSTANDING, OR…

Q: If a corporation when formed sets a par value for its shares low and issue common stock for a price…

Q: What is the reason for renewed interest in not-for-profits corporations?

A: Non-profit corporation owners do not make a profit. The money of a not-for-profit organisation is…

Q: Which of the following is incorrect regarding for-profit corporations? Multiple Choice Most business…

A: Corporations are the entity created by laws. Corporation can be two types, one is formed for profit…

Q: Which of the following would not be true of a privately held corporation? * It is sometimes called a…

A: Privately held corporation is also known as closely held corporation as its shares are held by small…

Q: What are the relative benefits and drawbacks of selling bonds, common stock, and preferred stock…

A: The main objective of the company is to reduce the overall cost of issuing the capital. The Company…

Q: Which characteristic of a corporation limits a stockholder's loss to the amount of his or her…

A: 1. A corporation is a legal entity i.e. it is a separate entity from its owners (shareholders). A…

Q: In applying the Sec. 318 attribution rules to a stock redemption, the stock of a corporation is only…

A: Sec 318 of US code is related with constructive ownership of stock. Under this section, an…

Q: If the corporation when formed sets a par value for its shares low and issue common stock for a…

A: Corporation can issue at its stock at par value, more than par value or below par value. For…

Q: What are not-for-profit corporations?

A: Definition A nonprofit corporation is a business that exists for the public welfare rather than for…

Q: Can an individual enter into a joint venture with a corporation? how do you account for that?

A: Joint venture can be defined as the business entity that is created by two or more parties that is…

Q: Which statement is incorrect? a. Book value per share is the claim of a shareholder in the net…

A: A share is the division in the capital of the company. A shareholder is entitled to receive division…

Q: If the corporation when formed sets a par value for its shares low and issue common stock for a…

A: Common stock: These are the shares that are issued by the company against the money which is…

Q: How much is the authorized share capital? How much is the issued share capital? How many shares of…

A: The authorized share capital is the maximum amount of share capital that the company is authorized…

Q: Why it is called that if a company acquires more than 50% of the voting stock of another company,…

A: Corporation: A corporation is a form of business entity that is incorporated through the state…

Q: Which of the following is a characteristic of a corporation?a. No income taxb. Limited liability of…

A: Corporation: It can be defined as a legal organization or an entity that is completely different…

Q: Why does a One Person Corporation shall not be required to have a minimum authorized capital stock?

A: Step 1 A one-person corporation shall not be required to have minimum authorized capital stock,…

Q: What requirments are imposed on publicly traded corporations by the Sarbanes-Oxley Act?

A: Fraud: It is the intentional misrepresentation of facts or information for the motive of personal or…

Q: An S Corporation will not be treated as having more than one class of stock solely because of…

A: S corporation is allowed to have only one class of stock. The companies are allowed to issue voting…

Q: What is a private corporation? Public corporation? A Dividend? A Limited Liability?

A: A corporation is referred to a separate legal entity which is owned by a group of people known as…

Q: Discuss the various reasons why one corporation might invest in the stock of another corporation?

A: Investing in common stock: When the investment is made in common stock the investor gets some rights…

Q: Which statement is incorrect? * Book value per share is the claim of a shareholder in the net…

A: Ordinary shareholders have right in the net assets of the respected company. Preference shareholders…

Q: What distinct advantage does a private or Subchapter S-corporation haveover the public corporation?

A: Business organization refers to any organization which is formed to carry out the commercial…

Q: Which of the following statements regarding an S-corporation is true? Select one: a. It must pay a…

A: S corporation is form of incorporation as a corporation as per IRS requirements. After meeting the…

Question

What if half of the voting stock is owned by another corporation which is not a close corporation, what kind of corporation will it be?

Expert Solution

Step 1

Voting stock: Percentage of stock that gives right to the holder to vote in the meetings is known as voting stock.

Step by step

Solved in 2 steps

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Is it possible for a nonstock and stock corporation to merge? What happens with their share and their classification as a corporation?
which characteristics of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation ?
Does a company benefit when an owner of the company's stock sells these shares to another individual?
Can the members of a non-stock corporation receive compensation?
Why does a One Person Corporation shall not be required to have a minimum authorized capital stock?
What is an owner of a corporation called? What is the difference between a closed corporation and an open corporation?
What advantages does a corporation have over a sole proprietorship? Whatare the disadvantages of a corporation?
What is a private corporation? Public corporation? A Dividend? A Limited Liability?
Which of the following would not be true of a privately held corporation? * It is sometimes called a closely held corporation. Its shares are regularly traded on the New York Stock Exchange. It does not offer its shares for sale to the general public. It is usually smaller than a publicly held company.
True or False: An S Corporation will not be treated as having more than one class of stock solely because of differences in voting rights (i.e. both voting and non-voting common stock).
What is a corporation? Why might founders have chosen to form a corporation rather than a partnership? What are the advantages and disadvantages of incorporation?
What is the reason for renewed interest in not-for-profits corporations?