Answered: Differentiate between closely held and…

Business

Finance

Differentiate between closely held and publicly owned corporations.

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 is corporation and example

A: A corporation is a legal body consisting of a group of individuals or a firm that has been permitted…

Q: What does the corporate charter describes?

A: Corporate Charter: A corporate charter is a legal document that establish the existence of a…

Q: What are bylaws of a corporation?

A: Corporate bylaws: The bylaws of a corporation are a set of rules established by the company's…

Q: Define closely held corporation

A: A closely held company is the public limited company which has a limited number of shareholders. The…

Q: Discuss the nature and classes of corporation

A: Corporations are the entities that are formed by the group of organizations or people which are…

Q: A corporation is a business owned by its stockholders.

A: Company or Corporate: Company is an acceptable type of business organization or legal structure for…

Q: Identify characteristics of corporations and their organization.

A: Corporations: It is one of the common ways an entity is registered. In accounting, a corporation…

Q: What are the characteristics of corporations?

A: A corporation refers to a separate legal entity which is legally a different person from the people…

Q: Explain the reasons for preparing and providing a shareholder agreement.

A: The shareholder agreement is the agreement between the shareholders and the board of the company. In…

Q: If the corporation is considered as de facto, who can question its existence? Board of Directors…

A: When corporation is considered as de facto, it means that corporation exist even though it may not…

Q: Differentiate between S and C corporations.

A: Answer: An S corporation is like any other company established under state law, except that for…

Q: What is the difference between a public and a private corporation? Provide an example of each.

Q: Explain publicly owned corporation

A: Publicly owned corporation: A publicly owned corporation is a corporation whose proprietorship is…

Q: Define corporation and explain the effects of the continuous inoperation of a corporation.

A: Corporation: A corporation is a legal entity that exists independently of its owners and has its own…

Q: Evaluate the similarities and differences between trusts and corporations. In an attempt to protect…

A: A legal entity acting as an agent of the individual or entity just to manage the assets and transfer…

Q: Define shareholder rights provision

A: Answer: Usually, a shareholder right means a set of rights acquired by a shareholder by way of…

Q: Define shareholder agreement. Explain how it is different to articles of association

A: The articles of association are a legal document that defines a company's objective and lays out the…

Q: Identify if statements are true for the corporate form of organization. It is a separate legal…

A: Corporation: The form of business entity ,which is incorporated by state law into a separate legal…

Q: What advantages does a corporation have over a sole proprietorship? Whatare the disadvantages of a…

A: There exist different forms of business structures from which we can choose while incorporating a…

Q: How it's GAAP and IFRS is suitable for Corporate Entities ?

A: The primary difference between the two systems is that GAAP can be called rules-based whereas IFRS…

Q: Describe advantages of corporation.

Q: Explain the difference between a privately owned and a publicily owned company?

A: The difference between a public and a private company are as follows:

Q: What are the types of corporations?

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

Q: . It is the governing body in a non-stock Corporation. * A. Corporators B. Board of Directors…

A: Solution concept company with stock Company with stock means the company having the…

Q: Explain the Steps in the Creation of a Corporation?

A: Corporation: It refers to a business form which is established as a separate legal entity.…

Q: List and explain shareholder rights

A: Shareholder's rights refers to the mix of rights which a shareholder in lieu to total number of…

Q: How does the Model Business Corporation Act affect the way corporations operate?

A: Corporation: A business concern where there is a separate legal entity, and are owned by…

Q: 1. What is the most important difference between a corporation and all other organization forms?

A: There are various different organizational forms such as sole proprietorship, partnership, Hindu…

Q: Explain what is the corporate charter?

A: A corporate charter is a legal document establishing the existence of a corporation. Once the…

Q: corporators

A: Stockholders are individuals, firms, or institutions that usually invest money in a company or…

Q: Which of the following Is not required to use IFRS? Multiple Choice O Publically traded company O…

A: IFRS stands for International financial reporting standards. These are Accounting standards issued…

Q: Explain the difference between an S corporation and a limited- liability company.

A: Introduction: A limited liability company is a corporate group that has a business or entity with a…

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: Why are large corporations often said to be publicly owned?

A: A corporation is a legitimate substance that is isolated and unmistakable from its owners.…

Q: lain what is corporation with sole proprietorship?

A: The ownership model establishes the relationship between a team's freedom and maturity.. Some of the…

Q: Describe the differences between a Subchapter S corporation and a Subchapter C corporation.

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

Q: Define what a corporation is, the types that exist and their characteristics.

Question

Differentiate between closely held and publicly owned corporations.

Expert Solution

Step 1

Any business with only a small number of stockholders is a closely held business. Its stocks are often traded only occasionally but always listed on government exchanges, although they often transact on OTCs.

Step 2

These companies are separate from private businesses whose shares are not traded publicly (not listed or OTC). Those holding shares in closely held companies should consult a financial advisor with tax and estate experience, as issues in liquidity, the position, and the obligations of major stakeholders can come into play.

Step by step

Solved in 3 steps

Knowledge Booster

Learn more about

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