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Ch 39 Corporations #1 assignment

Corporations

Q 1) Distinguish between: a) A public corporation and a publicly held corporation b) A publicly held corporation and a close corporation 2) It is said that the major weakness of the corporate form of doing business is "double taxation". a) What is it? b) Can it be avoided legally? How? 3) What is an "ultra vires" act?

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There are several stockholders in case of a public corporation. However, the management functions are not performed by the stockholders in case of a public corporation. In case of a public corporation, there is trading done publicly of the stock by letting the stock get exposure in the stock market (Clarkson, Miller & Cross, 2016). However, in case of a publicly held corporation, there are only a few stockholders. These stockholders can perform management functions and be responsible for running the company (Clarkson, Miller & Cross, 2016).