Business Foundations Ch 4

Front 1

sole propriertorship

Back 1

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

Front 2

unlimited liability

Back 2

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

Front 3

partnership

Back 3

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

Front 4

general partner

Back 4

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

Front 5

limited partner

Back 5

a person who invests money in a business but has no management responsibility or liability for losses beyond the amount that he or she invested in the partnership

Front 6

Articles of partnership

Back 6

A written or oral agreement that lists and explains the terms of a partnership

Front 7

limited liability partnership (LLP)

Back 7

A form of partnership that grants a partner possible limited liability in case of a malpractice or negligence of the other partner

Front 8

corporation

Back 8

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

Front 9

stocks

Back 9

the shares of ownership of a corporation

Front 10

stockholder

Back 10

a person who owns a corporation's stock

Front 11

closed corporation

Back 11

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

Front 12

open corporation

Back 12

a corporation whose stock can be bought and sold by any individual

Front 13

domestic corporation

Back 13

a corporation in the state in which it is incorporated

Front 14

foreign corporation

Back 14

a corporation in any state in which it does business expect in the one in which it is incorporated

Front 15

alien corporation

Back 15

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

Front 16

common stock

Back 16

stock owned by individuals or firms who may vote on corporate matters but whose claims on profits and assets are subordinate to the claims of others

Front 17

preferred stock

Back 17

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

Front 18

dividend

Back 18

a distribution of earnings to the stockholders of a corporation

Front 19

proxy

Back 19

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

Front 20

board of directors

Back 20

the top governing body of a corporations, the members of which are elected by the stockholders

Front 21

corporate officers

Back 21

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

Front 22

limited liability

Back 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

Front 23

S-corporation

Back 23

a corporation that is taxed as though it were a partnership

Front 24

limited-liability company (LLC)

Back 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

Front 25

not-for-profit corporation

Back 25

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

Front 26

joint venture

Back 26

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

Front 27

syndicate

Back 27

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

Front 28

merger

Back 28

the purchase of one corporation by another

Front 29

hostile takeover

Back 29

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

Front 30

tender offer

Back 30

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

Front 31

proxy fight

Back 31

a technique used to gather enough stockholder's votes to gain control over a targeted company