Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 1P
Summary Introduction
To Determine: The important difference between a corporation and an organization.
Introduction:
A corporation is an organization or a business framed by a group of individuals, and it has rights and liabilities isolated from those of the people included. It might be a philanthropic or a non-profit association occupied with activities for the public, private, municipal and city or town that has been sorted out to make a benefit.
Expert Solution & Answer
Explanation of Solution
The important differences between a corporation and an organization are as follows:
- The significant difference among the sorts of corporate hierarchical structures is based on how they are taxed.
- A corporation is a lawful entity isolated from its proprietors.
- The investors of a company usually pay taxes twice.
- This framework, in some cases is alluded to as double
taxation .
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Why do you think that one corporation/company needs to have an organization
What are the characteristics of corporations?
What are the types of corporations?
Knowledge Booster
Similar questions
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Business/Professional Ethics Directors/Executives...AccountingISBN:9781337485913Author:BROOKSPublisher:CengageIntermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage LearningEBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
Business/Professional Ethics Directors/Executives...
Accounting
ISBN:9781337485913
Author:BROOKS
Publisher:Cengage
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT