BADM 1020: Chapter 5
Terms
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- Sole Propretorship
- A business that is owned (and usually operated) by one person
- Unlimited Liability
- A legal concept that holds a business owner personally responsible for all the debts of the business
- Partnership
- A voulantary association of 2 or more persons to act as co-owners of a business for profit
- General Partner
- A person who assumes full or shared responsibility for operating a business
- General Partnership
- A business co-owned by 2 or more parters who are liable for everything the business does
- Limited Partner
- A business co-owned by one or more general partners but has no management responsibility or liability for losses beyond the amount he/she invested in the partnership
- Limited Partnership
- A business co-owned by one or more general partners who manage the business and limited parters who invested in it.
- Master Limited Partnership
- A business partnership that is owned and managed like a corporation but taxed like a partnership
- Stock
- The shares of ownership of a corporation
- Stockholder
- A person who owns a corporation's stock
- Close Corporation
- A corporation whose stock is owned by relatively few people and is not sold to the general public
- Open Corporation
- A corporation whose stock is bought and sold on security exhanges and can be purchased by any individual.
- Incorporation
- The process of forming a corporation
- Domestic Corporation
- A corporation is in the state in which it is incorporated
- Foreign Corporation
- A corporation in any state in which it does business except for the state in which it is incorporated
- Alien Corporation
- A corporation chartered by a foreign government and conducting business in the United Stated
- Corporate Charter
- A contract between the corporation and the state, in which the state recognizes the formation of the artificial person that is the corporation
- Common Stock
- Stock owned by individuals or firms who may vote on corporate matters, but whose claim on profit and assets are subordinate to those of common stock holders
- Preferred Stock
- Stock owned by individuals or firms who usually do not have voting rights but whose claims and dividends are paid before those of common stock owners.
- Dividend
- A distribution of earnings to the stockholders of a corporation
- Proxy
- A legal form listing issues to be decided at a stockholders meeting and enabling stock holders to transfer their voting rights to some other individual or individuals
- Board of Directors
- The top governing body of a corporation, the members are elected by the stock holders
- Corporate Officers
- The chairman of the board, president, executive vp's corporate secretary and treasuer or any other top executive appointed by the board of directors
- Limited Liability
- A feature of corporate ownership that limits each owner's financial liablility to the amount of money that he or she has paid for the corporation's stock.
- S-Corporation
- A corporation that is taxed as though it were a partnership
- Limited Liability Corporation (LLC)
- A form of business ownership that provided limited liability protection and is taxed like a partnership
- Government Owned Corporation
- A corporation owned and operated by a local state or federal government
- Quasi-Government Corporation
- A business owned partly by the government and partly by private citizens or firms.
- Not-for-Profit Corporation
- A corporation organized to provide a social, educational, religious or other service rather than to earn a profit.
- Cooperative
- An association of individuals or firms whose purpose is to perform some business function for its memebers
- Joint Venture
- An agreement between two or more groups to form a business entity in order to achieve a specific goal or to operate for a specific period of time
- Syndicate
- A temporary association of individuals or firms organized to perform a specific task that requires a large amount of capital
- Merger
- The purchase of one corporation by another
- Hostile Takeover
- A situation in which the management and board of directors of the firm targeted for acquisition at a price just high enough to tempt stock holders to sell their shares.
- Proxy Fight
- A technique used to gather enough stockholder votes to control the targeted company
- Disvestiture
- The process of dismantling a company and selling off different parts