Page 155 - Business Principles and Management
P. 155
Unit 2
FIGURE 6-4 Balance Sheet of York, Burton, and Chan, Inc.
ASSETS CLAIMS AGAINST ASSETS
Cash $ 240,000 Accounts Payable
(Liabilities) $ 74,900
Merchandise 60,000
Capital Stock 665,100
Equipment 90,000
Land & Buildings 350,000
Total $740,000 Total $740,000
FIGURE 6-5 An organization chart of a corporation.
STOCKHOLDERS
Owners who
elect board members
BOARD OF DIRECTORS
Selects officers and
makes major policy decisions
PRESIDENT
Jennifer L. York
May also be called CEO (Chief
Executive Officer) and may be elected
chair of the board of directors
VICE PRESIDENT SECRETARY AND TREASURER
Robert R. Burton Lu Chan
from them on an important issue. Burton would have more votes than York and
Chan together.
Their lawyer told the officers of the corporation that they must send each
stockholder notices of all stockholders’ meetings to be held. Even stockholders
with just one share must receive notices of meetings. If stockholders cannot attend
the meetings personally, they can be represented through a proxy that can be sub-
mitted by Internet, phone, or mail. A proxy is a written authorization for someone
to vote on behalf of the person signing the proxy. It is common practice for a
proxy form to be enclosed with the letter that announces a stockholders’ meeting.
One example of a proxy that a corporation might use is shown in Figure 6-6.
142
