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16 Cards in this Set

  • Front
  • Back
Proprietorship
An unincorporated business owned by one indiviudal.
What is a partnership?
An unincorporated business owned by two or more persons.
What is a Corporation?
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.
What is a S Corporation?
A special designation that allows small businesses that meet qualifications to be taxed proprietorship or partnership rather than as a corporation.
Stockholder Wealth Maximization?
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.
Intrinsic Value?
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.
Market Price
The stock value based on perceived but possibly incorrect information as seen by the marginal investor.
Equilibrium
The situation in which the actual market price equals the intrinsic value, so investors are indifferent between buying or selling a stock.
Business Ethics
A company's attitude and conduct toward its employees, customers, community, and stockholders
Corporate Raider
An individual who targets a corporation for takeover because it is undervalued.
Hostile Takeover
The acquisition of a company over the opposition of its management.
Chairman of the Board
The person most responsible for the firm's strategic policies.
Compensation Committee
A committee that consists of three outside (nonemployee) directors who set the compensation package for the senior officers.
Chief Executive Officer (CEO)
Heads the management team, and ideally is separate from chairman of the board.
Chief Operating Officer (COO)
In charge of the firm's actual operations.
Chief Financial Officer (CFO)
Responsible for the accounting system, raising capital, and evaluating major investment decisions and the effectiveness of operations.