Business 105

Front 1

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

Back 1

Sole Proprietorship

Front 2

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

Back 2

Unlimited Liability

Front 3

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

Back 3

Partnership

Front 4

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

Back 4

General Partner

Front 5

A business co-owned by two or more general partners who are liable for everything the business does

Back 5

General Partnership

Front 6

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

Back 6

Limited Partner

Front 7

A business co-owned by one or more general partners who manage the business and limited partners who invest money in it

Back 7

Limited Partnership

Front 8

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

Back 8

Master Limited Partnership (MLP)

Front 9

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

Back 9

Corporation

Front 10

The shares of ownership of a corporation

Back 10

Stock

Front 11

A person who owns a corporation's stock

Back 11

Stockholder

Front 12

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

Back 12

Closed Corporation

Front 13

A corporation whose stock can be bought and sold by an individual

Back 13

Open Corporation

Front 14

A corporation in the state in which it is incorporated

Back 14

Domestic Corporation

Front 15

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

Back 15

Foreign Corporation

Front 16

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

Back 16

Alien Corporation

Front 17

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

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Common Stock

Front 18

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

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Preferred Stock

Front 19

A distribution of earnings to the stockholders of a corporation

Back 19

Dividend

Front 20

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

Back 20

Proxy

Front 21

The chairman of the board, president, executive vice presidents, corporate secretary, treasurer, and any other top executive appointed by the board of directors

Back 21

Corporate Officers

Front 22

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

Back 22

Limited Liability

Front 23

A corporation that is taxed as though it were a partnership

Back 23

S-Corporation

Front 24

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

Back 24

Limited-Liability Company (LLC)

Front 25

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

Back 25

Government-Owned Corporation

Front 26

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

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Not-For-Profit Corporation

Front 27

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

Back 27

Cooperative

Front 28

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

Back 28

Joint Venture

Front 29

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

Back 29

Syndicate

Front 30

The purchase of one corporation by another

Back 30

Merger

Front 31

A situation in which the management and board of directors of a firm targeted for acquisition disapprove of the merger

Back 31

Hostile Takeover

Front 32

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

Back 32

Tender Offer

Front 33

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

Back 33

Proxy Fight

Front 34

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

Back 34

Leveraged Buyout (LBO)