Chapter 6
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
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
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
board of director (directors or board)
ruling body of a corporation