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33 Cards in this Set

  • Front
  • Back
document authorizing another person to vote on behalf of a shareholder in a corp
board of directors
group of people, elected by the shareholders, who have the ultimate authority in guiding the affairs of a corp
3 groups that govern a corp
shareholders elect board of directors who appoint officers who hire employees
what are the 3 most common forms of business ownership
1. sole proprietorship
2. partnership
3. corporation
unlimited liability
any damage or debts attributable to the business can also be attached to the owner because the two have no separate legal existence
general partnership
all partners have the right to participate as co-owner & are individually liable for the business's debts
limited partnership
one or more general partners.
one or more of the partners whose liabiltiy is attached to the amount of their capital investment
unincorporated business owned & operated by 2 or more persons under a voluntary legal association
partnership agreement
written document stating all the terms of operating the partnership by spelling out the partners' rights and responsibilities.
legally chartered enterprise having most of the legal rights of a person, including the right to conduct business, to own and sell property, to borrow money, and to sue or be sued;
owners of the corporation enjoy limited liability
owners of a corporation
stock certificate
document that proves stock ownership
common stock
shares whose owners have voting rights and have the last claim on distributed profits and assets
distribution of corporate assets to shareholders in the form of cash or other assets
preferred stock
shares that give their owners first claim on a company's dividends and assets after all debts have been paid and whose owners do not have voting rights
private corporation
company owned by private individuals or companies
public corporation
corporation that actively sells stock on the open market
the level of ease with which an asset can be converted to cash
S corporation (subchapter S corporation)
corps with no more than 75 shareholders that may be taxed as a partnership;
limited liability companies (LLCs)
organizations that combine the benefits of S corporations and limted partnerships without the drawbacks of either
subsidary corporations
corps whose stock is owner entirely or almost entirely by another corp
parent company
company that owns most, or all, of anothers company stock and that takes an active part in managing that other company
holding company
company that owns most, or all, of another company's stock but that does not actively participate in the management of that other company
chief executive officer (CEO)
person appointed by a corp's board of directors to carry out the board's policies and supervise the activities of the corporation
combination of two companies in which one purchases the other, assuming control of all property and liabilities
combination of two or more companies in which the old companies cease to exist and a new enterprise is created
form of buisness combination in which one company buys another company's voting stock
horizontal mergers
combinations of companies that are direct competitors in the same industry
vertical mergers
combinations of companies that participate in different phases of the same industry (materials, production, distribution)
conglomerate mergers
combinations of companies that are in unrelated businesses, designed to augment a company's growth and to diversity risk
leveraged buyout (LBO)
situation in which individuals or a group of investors purchase a company primarily with debt secured by the company's assets
hostile takeover
situation in which an outside party buys enough stock in a corporation to take control against the wishes of the board of directors and corporate officers
4 defenses against unwanted takeovers
1. the poison pill
2. golden parachute
3. shark repellant
4. white knight