Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

39 Cards in this Set

  • Front
  • Back
strategy whereby afirm sells one or more of its business units
joint venture
strategic alliance in which the collaboration involves joint owndership of a new venture
strategy of setting up one or more coporate units as new, independent corporations
chief executive offiecer (CEO)
top manager hired by the board of directors to run a corporation
the purchase of one company by another
preferred stock
stock that guarantees its holders fixed dividends and priority claims over assets but no corporate voting rights
employee stock owndership plan (ESOP)
arrangement in which a corporation hold its own stock in trust for its employees, who gradually receive owndership of the stock and control its voting rights
common stock
stock that pays dividends and guarentees corporate voting rights, but offers last claims over assets
the union of two corporations to form a new coporatoin
owner of shares of stock in a corporation
insitututional investors
large investors, such as mutual funds and pension funds, that purchase large blocks of corporate stock
S corporation
hybrid of a closely held corporation and a partnership; organized and operated like a corporation but treated as a partnership for tax purposes
unlimited liability
legal principle holding owners responsible for paying off all debts of business
board of directors
governing ody of a corporation that reports to its shareholders and delegates power to run its day to day operation but remains responsible for sustainig its assets
production era
period during the early 20th centruy in which US business focused primarily on improving productivity and manufacturing efficiency
corporate governance
roles of shareholders, directors, and other mangers in corporate decision making
limited partner
partner who doesn't share in a firm's managment and is liable for its debts only to the limit of the said partner's investment
limited liablity corporation
hybrid of a publicly held corporation and a partenership in which ownders are taxed as partners, but enjoy the benefits of a lmited liability
sole proprietorship
business owned andusually operated by one person who is responsible for all of its debts
authorization granted by shareholders for someone else to vote their shares
general partnership
business with two or more ownders who shar in both the operation of the frm and in financial responsibility for its debts
initial public offering (IPO)
first offer of shares in a closely held corporation to outside investors
industrial revolution
major mid 18th centruy change in production characterized by a shift to teh factory system, mass production andt he specialization of labor
strategic alliance
strategy in which two or more organizations collaborate on a project for mutual gain
master limited partnership
form of organization that sells hsares to investors who recieve profits and pay taxes on individual income from profits
share of ownership in a corporation
production era
period during the early 20th centruy in which US business focused primarily on improving productivity and manufacturing efficiency
multinational or transnational coroporation
from of coporation spanning national boundaries
professional corporation
form of ownderhip allowing professionals to take advantage of corporate benefits while grandintg them lmited business liability and unlmited professional liability
limited partnership
type of partnership consisting of limited partners and an active or managing partner
marketing concept
idea that a business must focus on identifying and satisfying conusmer wants in order to be profitable
business that is legally considered an entitiy separate from its ownders and is liable for its own debts ; ownwers'liability extends to the limits of their investments
form of organization in which a group of sole propriertorships and/or partnerships agrees to work together for common benefits
limited liability
legal principle holding investors liable for a firm's debts only to the limits of their personal investments in it
general (or active) partner
partner who actively manages a firm and who has unlimited liability for its debts
double taxation
situation in which taxes may be payable both by a corporation on its profits and by sarefholders on dividend incomes
tender offer
offer to buy shares made by a prospective buyer directly to a target orporation's shareholders, who then make individual decisions about whether to sell
closely held corporation
corporation whose sotck is held by only a few popeole and is not available for sale to the general public
publicly held corporation
corporation whose stock is widely held and avalible for sale to the general public