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16 Cards in this Set
- Front
- Back
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Proprietorship
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An unincorporated business owned by one indiviudal.
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What is a partnership?
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An unincorporated business owned by two or more persons.
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What is a Corporation?
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A legal entity created by a state, separate and distinct from its owners and managers, having unlimited life, easy trasnferability of ownership, and limited liability.
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What is a S Corporation?
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A special designation that allows small businesses that meet qualifications to be taxed proprietorship or partnership rather than as a corporation.
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Stockholder Wealth Maximization?
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The primary goal for managerial decisions; consider the risk and timing associated with expected earnings per share in order to maximize the price of the firm's common stock.
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Intrinsic Value?
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An estimate of a stock's "true" value based on accurate risk and return data. The intrinsic value can be estimated but not measured precisely.
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Market Price
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The stock value based on perceived but possibly incorrect information as seen by the marginal investor.
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Equilibrium
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The situation in which the actual market price equals the intrinsic value, so investors are indifferent between buying or selling a stock.
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Business Ethics
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A company's attitude and conduct toward its employees, customers, community, and stockholders
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Corporate Raider
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An individual who targets a corporation for takeover because it is undervalued.
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Hostile Takeover
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The acquisition of a company over the opposition of its management.
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Chairman of the Board
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The person most responsible for the firm's strategic policies.
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Compensation Committee
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A committee that consists of three outside (nonemployee) directors who set the compensation package for the senior officers.
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Chief Executive Officer (CEO)
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Heads the management team, and ideally is separate from chairman of the board.
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Chief Operating Officer (COO)
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In charge of the firm's actual operations.
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Chief Financial Officer (CFO)
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Responsible for the accounting system, raising capital, and evaluating major investment decisions and the effectiveness of operations.
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