forms a business
corporation
a separate legal entity
limited liability comapny
combines advantages of a corporation and partnership positives: pass through taxation flexibility limited liability negatives: double taxation burden of corporate structure unlimited liability
sole proprietorship
easy, quick, simple, affordable, full control with minimal administration adaptable challenges: risk, personal exposure credibility raisning additional capital
B corportation
meet rigorous standards of social and environmental performance, accountability, and transparency alignment with 3P approach
general partnership
mutual agency unlimited liability share/risk wealth equally
limited partnership
no mutual agency provision for limited liability for some do not share risk/ wealth equally
Preferred Stock Dividends
no vote the first claim on income the first claim on assets after the debt is paid
acquisition
one firm buys another horizontal: same industry vertical: distribution channel conglomerate: unrelated business
domestic corporation
operate in state in which it is incorporated
foreign corporations
operate in states other than state of incorporation
alien corporation
organized in one country and operate in another
3P approach
people, planet, profit
securities ans exchange commission
sale of stock/financial reporting full disclosure due diligence thorough in finding and reporting information
merger
two firms voluntarily join into one
common stock
voting rights residual claims to assets