BUS 082 Lecture Notes - Lecture 14: Double Taxation, Berkshire Hathaway, Exxonmobil
Document Summary
State chartered legal entity with authority to act and have liability separate from its owners. Stockholders have no liability beyond their own investment. You won"t lose more than what you put into it. Stock option, the ability to buy a certain amount of shares for today"s price hoping that the stock price will go up. When someone is both the owner and the manager there is more motivation. Only public corporations are traded on the stock market. Ability to raise more money for investment. The idea of your company dying has gone away. People want to work for a large corporation because the pathways up are clearer. Expensive to set up and a lot of legal work. Delaware charters are cheaper than any other state. Dividends are payments to the stockholders of funds to which taxes have already been paid. The owners get the rest of the dividends, and then that is taxes.