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14 Cards in this Set
- Front
- Back
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Corporation |
when a group of people form a business or organization and have rights andliabilities separate from the individuals involved |
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C Corporation or General Corporation |
most widely used form of business in the world; treated as separate legalentities from its shareholders, so they have the ability to sue or be sued, arecapable of holding assets in its own name, can sign contracts and have theability to make by-laws, which govern its internal affairs |
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Shareholder |
any person, company or other institution which owns at least one share in acompany (also known as a stockholder) |
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Asset |
item of ownership having an exchange value |
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Liability |
money or debt owed |
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Double Taxation |
when a corporation makes a profit, it pays a federal corporate income tax on it,and then if the company declares a dividend, the stockholders must report it ispersonal income and pay more taxes |
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S Corporation |
general corporations which have elected a special tax status with the IRS afterthe corporation has been formed; most appropriate for small business ownersand entrepreneurs who prefer to be taxed as if they were still sole proprietorsor partners |
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FICA Taxes |
made up of social security taxes and Medicare taxes |
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Social Security Tax |
provides benefits for certain retired, disabled or deceased workers and theirfamilies |
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Medicare Tax |
pays for the medical expenses of most people over the age of 65 |
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DISC |
created to encourage exports and improve the balance of trade |
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Subsidiary |
an entity which is controlled by another entity (or parent company) |
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Stock |
outstanding capital of a company or corporation |
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Limited Liability Corporation |
fall under either a C corporation, an S corporation or a partnership dependingon how it decides to be treated for taxation when it is first formed; are treatedas a separate legal entity from its owners (members) just like in a corporation |
