Badm 1020: Chapter 5

Front 1

Sole Propretorship

Back 1

A business that is owned (and usually operated) by one person

Hint 1

Single person

Front 2

Unlimited Liability

Back 2

A legal concept that holds a business owner personally responsible for all the debts of the business

Hint 2

Legal concept

Front 3

Partnership

Back 3

A voulantary association of 2 or more persons to act as co-owners of a business for profit

Hint 3

Voulantary association

Front 4

General Partner

Back 4

A person who assumes full or shared responsibility for operating a business

Hint 4

Person who assumes full or...

Front 5

General Partnership

Back 5

A business co-owned by 2 or more parters who are liable for everything the business does

Hint 5

Shared liability

Front 6

Limited Partner

Back 6

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

Hint 6

No responsibility or liability

Front 7

Limited Partnership

Back 7

A business co-owned by one or more general partners who manage the business and limited parters who invested in it.

Hint 7

Co-owened by one or more general partners

Front 8

Master Limited Partnership

Back 8

A business partnership that is owned and managed like a corporation but taxed like a partnership

Hint 8

Managed like a corporation, taxed like a ...

Front 9

Corporation

Back 9

An artificial person created by law, with most of the legal right 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

Hint 9

An artificial person created by law

Front 10

Stock

Back 10

The shares of ownership of a corporation

Hint 10

Ownership shares

Front 11

Stockholder

Back 11

A person who owns a corporation's stock

Hint 11

A person who owns

Front 12

Close Corporation

Back 12

A corporation whose stock is owned by relatively few people and is not sold to the general public

Hint 12

Stock owned by few people

Front 13

Open Corporation

Back 13

A corporation whose stock is bought and sold on security exhanges and can be purchased by any individual.

Hint 13

Stock is bought and sold on security exchanges

Front 14

Incorporation

Back 14

The process of forming a corporation

Hint 14

Forming a corporation

Front 15

Domestic Corporation

Back 15

A corporation is in the state in which it is incorporated

Hint 15

Corporation in the state

Front 16

Foreign Corporation

Back 16

A corporation in any state in which it does business except for the state in which it is incorporated

Hint 16

Corporation in any state in which it does business except for..

Front 17

Alien Corporation

Back 17

A corporation chartered by a foreign government and conducting business in the United Stated

Hint 17

Chartered corporation

Front 18

Corporate Charter

Back 18

A contract between the corporation and the state, in which the state recognizes the formation of the artificial person that is the corporation

Hint 18

Contract between the corporation and the state

Front 19

Common Stock

Back 19

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

Hint 19

Stock owened by individuals or firms

Front 20

Corporate Charter

Back 20

A contract between the corporation and the state, in which the state recognizes the formation of the artificial person that is the corporation

Hint 20

Contract between the corporation and the state

Front 21

Preferred Stock

Back 21

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.

Hint 21

Do not have voting rights

Front 22

Dividend

Back 22

A distribution of earnings to the stockholders of a corporation

Hint 22

Distribution of earnings

Front 23

Proxy

Back 23

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

Hint 23

A legal from listing issues

Front 24

Board of Directors

Back 24

The top governing body of a corporation, the members are elected by the stock holders

Hint 24

Top governing body of a corporation

Front 25

Corporate Officers

Back 25

The chairman of the board, president, executive vp's corporate secretary and treasuer or any other top executive appointed by the board of directors

Hint 25

CEO, President...
Appointed by the board of directors

Front 26

Limited Liability

Back 26

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.

Hint 26

Limits each owner's financial liability

Front 27

S-Corporation

Back 27

A corporation that is taxed as though it were a partnership

Hint 27

Taxed like a partnership

Front 28

Limited Liability Corporation (LLC)

Back 28

A form of business ownership that provided limited liability protection and is taxed like a partnership

Hint 28

A form of business ownership

Front 29

Government Owned Corporation

Back 29

A corporation owned and operated by a local state or federal government

Hint 29

Local state or federal government

Front 30

Quasi-Government Corporation

Back 30

A business owned partly by the government and partly by private citizens or firms.

Hint 30

Owned by the government and...

Front 31

Not-for-Profit Corporation

Back 31

A corporation organized to provide a social, educational, religious or other service rather than to earn a profit.

Hint 31

Provides a service

Front 32

Cooperative

Back 32

An association of individuals or firms whose purpose is to perform some business function for its memebers

Hint 32

An association of individuals or firms...

Front 33

Joint Venture

Back 33

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

Hint 33

An agreement between two or more groups

Front 34

Joint Venture

Back 34

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

Hint 34

An agreement between two or more groups

Front 35

Syndicate

Back 35

A temporary association of individuals or firms organized to perform a specific task that requires a large amount of capital

Hint 35

A temporary association of individuals or firms

Front 36

Merger

Back 36

The purchase of one corporation by another

Hint 36

The purchase of...

Front 37

Hostile Takeover

Back 37

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.

Hint 37

Tempting to sell stock shares

Front 38

Proxy Fight

Back 38

A technique used to gather enough stockholder votes to control the targeted company

Hint 38

A technique to gather stockholder votes

Front 39

Tender Offer

Back 39

An offer to purchase the stock of a firm targeted for acquistion at a price just high enough to tempt stock holders to sell their shares

Hint 39

An offer to purchase the stock of a firm targeted

Front 40

Disvestiture

Back 40

The process of dismantling a company and selling off different parts

Hint 40

Dismantle

Front 41

Leveraged Buyout (LBO)

Back 41

A purchase arrangment that allows a firm's managers and employees, or a group of investors to purchase the company

Hint 41

A purchase arrangment that allows