NOTE: A corporation is a distinct, separate legal entity. > NOTE: Many large businesses are corporations; as a result, they generate 90% of the total business dollars in the United States. As a separate entity, a corporation must pay taxes on its income. Income is distributed to stockholders as dividends, and stockholders must pay taxes on the dividends they receive A business must file an application of incorporation with the state in which the company will incorporate. After approving this application, the state grants a charter (or articles of incorporation) that formally creates the corporation. State incorporation laws differ between states. Organization costs are recorded as an expense as they are incurred. 1. Define the following Terms: Stock: Stockholders: 2. What are the advantages of a corporate form? 3. What are the disadvantages of a corporate form? 4. What costs incurred in forming a corporation and are journalized as organizational expenses? NOTE: A corporation is a distinct, separate legal entity. > NOTE: Many large businesses are corporations; as a result, they generate 90% of the total business dollars in the United States. As a separate entity, a corporation must pay taxes on its income. Income is distributed to stockholders as dividends, and stockholders must pay taxes on the dividends they receive A business must file an application of incorporation with the state in which the company will incorporate. After approving this application, the state grants a charter (or articles of incorporation) that formally creates the corporation. State incorporation laws differ between states. Organization costs are recorded as an expense as they are incurred. 1. Define the following Terms: Stock: Stockholders: 2. What are the advantages of a corporate form? 3. What are the disadvantages of a corporate form? 4. What costs incurred in forming a corporation and are journalized as organizational expenses? NOTE: A corporation is a distinct, separate legal entity. > NOTE: Many large businesses are corporations; as a result, they generate 90% of the total business dollars in the United States. As a separate entity, a corporation must pay taxes on its income. Income is distributed to stockholders as dividends, and stockholders must pay taxes on the dividends they receive A business must file an application of incorporation with the state in which the company will incorporate. After approving this application, the state grants a charter (or articles of incorporation) that formally creates the corporation. State incorporation laws differ between states. Organization costs are recorded as an expense as they are incurred. 1. Define the following Terms: Stock: Stockholders: 2. What are the advantages of a corporate form? 3. What are the disadvantages of a corporate form? 4. What costs incurred in forming a corporation and are journalized as organizational expenses?