GFOB

exchange rate between us and euro

1 dollar is .90 euro

acquisition

When one firm buys another

C Corp

a for profit entity with limited liability protection, possibility of unlimited number of shareholders, have perpetual life, limit the liability of the stockholders, publicly traded

Theory Z

a management philosophy that stresses employee participation in all aspects of company decision making

comparative advantage

an existing ability of a country to supply a product more efficiently and at a lower price compared to other countries

theory x

assumes that workers are basically lazy, error-prone, and extrinsically motivated by money and, thus, should be directed from above.

theory y

assumes that, given challenge and freedom, workers are motivated to achieve self-esteem and to demonstrate their competence and creativity.

Who does the CEO report to?

board of directors

exchange rate

number of unites of a given currency that can be purchased for the unit of another currency

LLP

organizational form that is often used for professional firms(law firms), one level of taxation

product invention

patent

What business requires articles of incorporation

S- Corp

shareholder

A person who invests in a corporation by buying stock and is a partial owner

merger

Combination of two or more companies into a single firm

mnc

corporation that has operations in more than one country

two capital components

debt and equity

LLC (Limited Liability Company)

for profit business form with members rather than shareholders as owners, taxed at the member level, limited liability, wealth management and realty rental firms are LLCs

S corporation

private businesses, limited to 100 owners, one level of taxation at the personal level of the owners, stock ownership transfer can be done through sale of shares

CFO

reports to the CEO, directs and coordinates the financial activities of the firm

CEO

role is to create long term shareholder wealth maximization

absolute advantage

the ability to produce a good using fewer inputs than another producer

company logo

trademark