Chapter 6

cooperative

a business owned and operated by it its user-members for the purpose of supplying themselves with goods and services

corporation

a business owned by a group of people and authorized by the state in which it is located to act as though it were a single person.

quasi-public corporation

a business that is important, but lacks the profit potential to attract private investors, and is often operated by local, state, or federal goverment

open corporation (publicly owned corporation)

a corporartion that offers its shares of stock for public sale

close corporation (closely held corporation)

a corporation that does not offer its shares of stock for public sale

limited liability company (LLC)

a special type of corporation that is taxed as if it were a sole proprietorship or partnership

prospectus

a version of registration statment for the Securities and Exchange Commision that contains extensive details about the company and its proposed sale securites

proxy

a written authorization for someone to vote in behalf of the person signing the proxy

charter (certified of incorporation)

an official document granted by a state giving power to run a corporation

nonprofit corporation

an organization that does not pay taxes and does not exist to make a profit

shares

equal parts of the division of ownership of a corporation

virtual corporation

network of companies that form allaiance among themselves as needed to take advantage of fast-changing market conditions

stockholders (shareholders)

owners of a corporation

dividends

profits distributed to stockholders on per-share basis

board of director (directors or board)

ruling body of a corporation

capital stock (stock)

the general term applied to the shares of ownership of a corporation

officers

top executives who are hired to manage the business

joint venture

two or more business that agree to provide a good or service, sharing the costs of doing business and also the profits