Business: Chapter 4

  1. Sole Proprietorship
    a business that is owned (and usually operated) by one person
  2. Unlimited Liability
    a legal concept that holds a business owner personally responsible for all that debts of the business
  3. Partnership
    a voluntary association of two or more persons to act as co-owners of a business for profit
  4. General Partner
    a person who assumes full or shared responsibility for operating a business
  5. General Partnership
    a business co-owned by two or more general partners who are liable for everything the business does
  6. Limited Partner
    a person who contributes capital to a business but has no management responsibility or liability for losses beyond the amount he or she invested in the partnership
  7. Limited Partnership
    a business co-owned by one or more general partners who manage the business and limited partners who invest money in it
  8. Master Limited Partnership (MLP)
    a business partnership that is owned and managed like a corporation but often taxed like a partnership
  9. Corporation
    an artificial person created by law with most of the legal rights of a real person, including the rights to start and operate a business, to buy or sell property, to borrow money, to sue or be sued, and to enter into binding contracts
  10. Stock
    the shares of ownership of a corporation
  11. Stockholder
    a person who owns a corporation's stock
  12. Closed Corporation
    a corporation whose stock is owned by relatively few people and is not sold to the general public
  13. Open Corporation
    a corporation whose stock can be bought and sold by any individual
  14. Domestic Corporation
    a corporation in a state in which it is incorporated
  15. Foreign Corporation
    a corporation in any state in which it does business except the one in which it is incorporated
  16. Alien Corporation
    a corporation chartered by a foreign government and conducting business in the United States
  17. Common Stock
    stock owned by individuals or firms who may vote on corporate matters but whose claims on profit and assets are subordinate to the claims of others
  18. Preferred Stock
    stock owned by individuals or firms who usually do not have voting rights but whose claims on dividends are paid before those of common-stock owners
  19. Dividend
    a distribution of earnings to the stockholders of a corporation
  20. Proxy
    a legal form listing issues to be decided at a stockholders' meeting and enabling stockholders to transfer their voting rights to some other individual or individuals
  21. Board of Directors
    the top governing body of a corporation, the members of which are elected by the stockholders
  22. Corporate Officers
    the chairmen of the board, president, executive vice presidents, corporate secretary, treasurer, and any other top executive appointed by the board of directors
  23. Limited Liability
    a feature of corporate ownership that limits each owner's financial liability to the amount of money that he or she has paid for the corporation's stock
  24. S-Corporation
    a corporation that is taxed as though it were a partnership
  25. Limited-Liability Company (LLC)
    a form of business ownership that combines the benefits of a corporation and a partnership while avoiding some of the restrictions and disadvantages of those forms of ownership
  26. Government-Owned Corporation
    a corporation owned and operated by a local, state, or federal government
  27. Not-For-Profit Corporation
    a corporation organized to provide a social, educational, religious, or other service rather than to earn a profit
  28. Cooperative
    an association of individuals or firms whose purpose is to perform some business function for it's members
  29. 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
  30. Syndicate
    a temporary association of individuals or firms organized to perform a specific task that requires a large amount of capital
  31. Merger
    the purchase of one corporation by another
  32. Hostile Takeover
    a situation in which the management and board of directors of a firm targeted for acquisition disapprove of the merger
  33. Tender Offer
    an offer to purchase the stock of a firm targeted for acquistion at a price just high enough to tempt stockholders to sell their shares
  34. Proxy Fight
    a technique used to gather enough stockholder votes to control a targeted company
  35. Leveraged Buyout (LBO)
    a purchase arrangement that allows a firm's managers and employees or a group of investors to purchase the company
Card Set
Business: Chapter 4
Business: Chapter 4