Answer the Following: A. What Powers Does a Corporation Normally Possess

question 54

Essay

Answer the following:
a. What powers does a corporation normally possess?
b. What is the doctrine of ultra vires? What is the effect of an ultra vires contract?
A corporation possesses only the powers that the state confers on it. Typical general powers granted by incorporation statutes include the following: (1) perpetual succession; (2) to sue and be sued in its corporate name; (3) to have a corporate seal; (4) to make and amend bylaws; (5) to acquire and dispose of property; (6) to own, vote, and dispose of shares in other entities; (7) to make

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Definitions:

Accounting Principles

Accounting principles are the rules and guidelines that companies must follow when reporting financial data.

Private-Sector Organizations

Businesses and corporations owned by individuals or groups in the private sector, not controlled by the government.

FASB

The Financial Accounting Standards Board is an entity tasked with setting the standards for financial accounting and reporting across the United States.

Accounting Standards

The rules and guidelines that companies must follow when reporting financial data and statements, ensuring transparency, consistency, and comparability.