Chapter 25

c corporation

The most common type of corporation, which is a legal business entity that offers limited liability to all of its owners, who are called stockholders

unlimited liability

The owner is personally and fully responsible for all losses and debts of the business

nonprofit corporation

a corporation that does not seek to earn a profit and differs in several fundamental respects from C corporations

Subchapter S Corporation

a corporation that is taxed like a partnership

divident

a stockholder's share of a company's profits, usually as a cash payment

partnership agreement

a written agreement among all owners

partnership

A business in which two or more persons combine their assets and skills

limited liability company

A business organization in which the business (not the owner) is liable for the company's debts

cooperative

A business that is owned by the members it serves and is managed in their interest.

limited liability

A form of business ownership in which the owners are liable only up to the amount of their individual investments.

liability

An amount owed by a business

shareholders

Investors who purchase shares of stock in a corporation.

legal structure

The way a business is set up for legal or tax purposes, such as a corporation, cooperative, or sole proprietorship.

Sole Proprietorship

a business owned and managed by a single individual

share of stock

each unit of ownership in a corporation

limited partnership

partnership in which only one partner is required to be a general partner

general partnership

partnership in which partners share equally in both responsibility and liability

stockholders

people or entities that own stock in a corporation and therefore are its owners

incorporate

to bring together features, ideas, or elements