Corporations are separate legal entities which are owned and
controlled by the members. Here multiple Stock holders are the real
owners of the corporation.
The higher the amount of shares or percentage of share the greater
is the ownership and the goal of the firm is dictated by the
ownership percentage of the firm. Goal will be oriented towards the
highest shareholder of the corporation.
Please Discuss in case of Doubt
Best of Luck. God Bless
Please Rate Well
74 Who really owns a corporation, and how does that impact the goal of the firm?
who really owns a corporation and how does this impact the
goal of a firm
Who really owns a corporation, and how does that impact the goal of 4 the firm?
A firm that owns the stock of another corporation does not have to pay taxes on the entire amount of dividends received. In general, only 30 percent of the dividends received by one corporation from another are taxable. The purpose of this tax law feature is to mitigate the effect of triple taxation, which occurs when earnings are first taxed at the first firm, its dividends paid to the second firm are taxed again, and the dividends paid to shareholders...
How does delegation impact decentralization or centralization of a firm?
FIN220 What is the agency problem, and how might it impact the goal of maximization of shareholder Question 4. wealth? Question 5. What is corporate governance? What role does a corporation's board of directors play in corporate governance? Question 6. What is the time value of money? Why is it so important?
Part I. How does SOX Section 806 impact whistleblowing? Part 2. Dodd-Frank Wall Street Reform and Consumer Protection Act a. List Dodd-Frank's main provisions (Hint: they go beyond whistleblowing) b. State Dodd-Frank's limits on whistle-blowing awards to the following: > An internal accountant or auditor > An auditor of a public company > An employee of an audit firm who observes issues with its firm's auditing of a public company c. Give an example of how a corporation might comply...
Why can’t government really “help” people who need help? How does government “help” (handouts, subsidies, loans, etc.), actually hurt the very institutions which can help them most?
How does Statistics really works?
We learned that share value maximization is the ultimate goal of a firm in the market economy? How does this seemingly selfish goal benefit the entire society?
Since a firm hasn’t really changed because of the stock dividend, the total market value of the corporation should not change. In other words, if the total market value of the corporation was $1 million before the stock dividend, it should be $1 million after the stock dividend. However, the market value of each share should decrease: $1,000,000 divided by 100,000 shares = $10 per share, and $1,000,000 divided by 110,000 shares = $9.0909. The total market value of the...
Joe owns 10% of a corporation that is treated as a C corporation for tax purposes. His basis in the corporation is $50,000. The corporation has sigificant retained earnings. The corporation distributes $10,000 to Joe. How much taxable income does Joe report as a result of this distribution? What is Joes tax basis in the corporation after the distribution?