Cooperation

Owned by a group of people and authorized by the state

Charter

A group of people must get permission to form a corporation, organizers must obtain a charter.

Stockholders

The owners of a cooperation are called stockholders, which is divided into equal parts called shares. A person who buys a share becomes a stockholder. Therefore thousands of people can own a cooperation.

Board of Directors

The ruling body of the corporation. Which are elected by the stockholders. Directors have the management oversight responsibilities to develop plans and policies to guide the corporation as well as appoint officers to carry out the plans .

Officers

Top executives who are hired to manage the business. Appointed by the board of directors. Positions consist of: President, Secretary, and a Treasurer. Top officers include CEO and CFO.

Close and Open Corporations

Close Corp. is on that does not offer its shares of stock for public sale, only a few own it.

Open Corp. is one that offers its shares of stock for public sale.

Preparing the Certificate of Incorporation

The 4 steps to complete this task are:

Naming the Business

(Required by law to have a name that indicates a corp has been formed)

Stating the Purpose of the Business

(Required by law to described your purpose clearly)

Investing in the Business

(Must have to correct amount to invest in the corp.)

Paying Incorporation Costs

(Must pay an organization tax based on the amount of capital stock)

Operating the New Corporation

The 2 steps to complete this task are:

Getting Organized

( To prepare a balance sheet or statement of financial position)

Handling Voting Rights

( Owners agree to have the equal amount of votes and stockholders get the number of shares they own to vote)

Management Issues for Corporations

The 9 steps to complete this task are:

Sources of Capital