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

45 Cards in this Set

  • Front
  • Back
What are two advantages of a sole proprietorship?
easy start up
flexible hours
what are two disadvantages to a sole proprietorship?
limited life
unlimited liability
what are two advantages of a partnership?
more capital
share responsibility
waht are two disadvantages to a partnership?
unlimited liability
limited life
waht are two advantages of a corporation?
unlimited life
increase in capital
what are two disadvantages to a corporation?
costly and time consuming start up
double taxation
what are 3 reasons why corprations need funds?
pay dbts
expand the business
increase inventory
what are 3 sources of funds for corporations?
debt financing
equity financing
retained earnings
recieves dividends last
has voting rights
common stock
recieves dividens first
no voting rights
preffered stock
What is a charter
a licence to do business issued to the corporation by the federal or state gov
what are 4 things included in a charter
name of business, adress, purpose, numbers of shares of stock
what form of business is subject to double taxation
what is double taxation
when dividends are recieved they are taxed as corporate profits then when distributed are taxed as individual incomes
What are the 3 major stock exchanges
NYSE(New York Stock Exchange)
Nasdaq(national association of security dealers automated quotes)
AMEX(American Stock Exchange)
WHat kind of stock does NASDAQ exchange
over the counter stock
what kind of stock does the NYSE and The AMEX exchange
unlisted stocks
when a corporation wants to issue a stock who do they go to the sell and buy a stock for them
Investment bank
WHat is the difference between speculators and investors
Speculators act on guesses to buy and sel stock in short term while investors hope for an increase in the long term
Speculators who think the proce of stocks willfall
Speculators who think price of stock will rise
WHat is the difernce between a private and a public corporation
In a private corporation, stocks are not sold to public and in public they are
the authorazation of allowing someone to vote in your place when dealing with stocks
A licenced proffesional who buys and sells stock for customers
what is a contract?
a legal agreement between two or more parties
What are 4 charachteristics of a S Corp
25-30 stockholders
unlimited life
limited liability
not subject to double tax
what is a Pe ratio
a price to earnings ration obtained by divididing stocks price by companies latst 12 month earnings per share
a bond with no collateral
debenture bond
a bond where real estate serves as a form of collateral
mortage bond
the date at which a bond expires and dividends are due
maturity date
another name for interst rate
coupon rate
profit given to shareholders
the profitmade from sale of stock
capital gain
what is the SEC
the Securities EXchange Commision. It helps with the buying and selling of securites
how are bonds differnt from stocks
bonds earn interst and stocks earn dividends
bondsare a form of loans and stocks are a form of ownership
Bonds that score BBB of below and are considered risky
Junk Bonds
a bond with zero interest
zero bond
a bond sold below face value
discount bond
bond sold above face value
Premium bond
serves as a stock market indicator and has 30 industrial corporations
Why is a corporation reffered to as a legal entity
all leveles of the corporation come together to form a whole
what are 3 things that a corporation is allowed to do
enter into contrats
sue or be sued
pay taxes
waht is the order of liquidation
Preffered stock
common stock
waht advantage does an S corporation have over a partnership
it has stock
waht are the advantages of investing in a mutual fnd
proffesinal managment