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32 Cards in this Set

  • Front
  • Back

Sole proprietorship

A business that is owned and usually operated by one person

Unlimited liability

Hey legal concept that holds a business owner personally responsible for all the debts of the business


A voluntary association of two or more persons to act as co owners of a business for profit

General partner

A person who assumes full or shared responsibility for operating a business

Limited partner

A person who invests money in a business but has no management responsibility or liability for losses be on the amount he or she invested in the partnership


An artificial person created by law with most of the legal rights of a real person including the rights to start and operate a business, to buy or sell property, to borrow money to sue or be sued and to enter into binding contracts


The shares of ownership of a corporation


A person who owns a corporation stock

Closed corporation

A corporation whose stock is owned by relatively few people and is not sold to the general public

Open corporation

A corporation who's stock can be bought and sold by an individual

Domestic corporation

A corporation in the state of which it is incorporated

Foreign corporation

A corporation in any state in which it does business except the one in which it is incorporated

Alien corporation

A corporation chartered by a foreign government and conducting business in the United States

Common stock

Stock owned by individuals or firms who may vote on corporate matters but whose claims on profit and assets are sub ordinate to the claims of others

Preferred stock

Stock owned by individuals or frames who usually do not have voting rights but who's claims on dividends are paid before those of common stock owners


A distribution of earnings to the stockholders of a corporation


A legal form listing issues to be decided at a stockholders meeting and enabling stockholders to transfer their voting rights to some other individual or individuals

Board of directors

The top governing body of a corporation, the members of which are elected by the stockholders

Corporate officers

The Chairman of the Board, President, executive vice president, corporate, secretary, treasurer and any other top executive appointed by the Board of Directors

Limited liability

A future of corporate ownership that limits each owner's financial liability to the amount of money that he or she has paid for the corporation's stock

S corporation

A corporation that is taxed as though it were a partnership

Limited-liability company(llc)

A form of business ownership that combines the benefits of a corporation and a partnership while avoiding some of the restrictions and disadvantages of those forms of ownership

Not-for-profit corporation

A corporation organized to provide a social, educational, religious, or other service rather than to earn a profit

Joint venture

An agreement between two or more groups to form a business entity in order to achieve a specific goal or to operate for a specific period of time


A temporary association of individuals or firms organized to perform a specific task that requires a large amount of capital


The purchase of one corporation by another

Hostile takeover

A situation in which the management and board of directors of a firm targeted for acquisition disapprove of the merger

Tender offer

An offer to purchase the stock of a firm targeted for acquisition at a price and just high enough to tempt stockholders to sell their shares

Proxy fight

A technique used to gather enough stockholders votes to control a targeted company

Horizontal mergers

Merger between firms that make and sell similar products or services and similar market

Vertical merger

Merger between firms that operate at different but related levels in the production and marketing of a product

Conglomerate mergers

Merger takes place between firms in completely different industries