Identify Each of the Following Corporations by Type

question 3

Essay

Identify each of the following corporations by type.
a. Dr. Smith and Dr. Jones are both medical doctors who practice together. They incorporate their medical practice so that they can offer themselves and their employees better employment benefits.
b. A group of concerned citizens obtains a corporate charter from the state to form a local Water Planning and Management Corporation that is authorized to do water planning on a local level and to grant permits for such purposes as the installation of ditches, and the encouragement of good water usage practices in their jurisdictional area.
c. Agatha and Betty, who are sisters, form a corporation in which they are the sole shareholders. They plan to operate a large retail store that sells collectibles. Agatha is the president and Betty is the chairperson of the board of directors.
d. Bill and Carl form a corporation to prevent spouse and child abuse. The corporation operates a shelter for battered women and homeless children.
e. Zeron Corporation is incorporated in the state of West Virginia. It decides to expand its business to Kentucky. What type of corporation is it in West Virginia? What type of corporation is it in Kentucky?

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Definitions:

Machine-Hours

An indicator of the amount of time machines are actively running, reflecting the cumulative hours of operation over a defined timeframe.

Predetermined Overhead Rate

An estimated rate used to assign overhead costs to products or services, based on a relevant activity base.

Manufacturing Overhead

All manufacturing costs other than direct materials and direct labor, including expenses such as rent, utilities, and equipment depreciation.

Predetermined Overhead Rate

An estimated rate used to allocate indirect costs to products or services, based on a selected activity base such as machine-hours or labor-hours.