Chapter 4 Choosing A Form of Business Ownership
Joint venture
A __________ __________________ is an agreement between two or more groups to form a business entity in order to achieve a specific goal or two operate for a specific period of time.
Sole Proprietorship
A business that is owned and usually operated by one person is called...
Merger
A combining of two corporations or other business entities to form one business is called a...
Foreign corporation
A corporation in any state in which it does business except the one in which it is incorporated is called a...
Non-profit organization
A corporation organized to provide for social, educational, religious, or other service rather than earn a profit is called a not-for-profit corporation, or a...
S Corporation
A corporation that is taxed as though it were a partnership is called a...
Alien corporation
A corporation which is chartered by a foreign government and is conducting business in the United States is called an...
Domestic corporation
A corporation which operates in the state in which it is incorporated is called a...
Open corporation
A corporation whose stock can be bought and sold by any individual is called an...
Closed corporation
A corporation whose stock is owned by relatively few people and is not sold to the general public. This corporation is called a...
Dividend
A distribution of earnings to the stockholders of a corporation is defined as a...
Limited liability
A feature of corporate ownership that limits each owner's financial liability to the amount of money that he or she has paid for the corporation's stock is called...
Limited liability company
A form of business ownership that combines the benefits of a corporation and a partnership while avoiding some of the restrictions and disadvantages of those forms of ownership is abbreviated as LLC, which stands for:
Unlimited liability
A legal concept that holds a business owner personally responsible for all the debts of the business.
Proxy
A legal form listing issues to be decided at a stockholders' meeting and enabling stockholders to transfer their voting rights to some other individual(s) is called a...
Horizontal merger
A merger between firms that make and sell similar products or services in similar markets is called a...
Vertical merger
A merger between firms that operate at different but related levels in the production and marketing of a product (such as a merger between a producer and supplier) is called a...
Conglomerate merger
A merger that takes place between firms of completely different industries is called...
Stockholder
A person who owns a corporation's stock is called...
Hostile takeover
A situation in which the management and board of directors of a firm targeted for acquisition disapprove of the merger. This is called a...
Proxy fight
A technique used to gather enough stockholder votes to control a targeted company is called a...
Syndicate
A temporary associate of individuals or firms organized to perform a specific task that requires a large amount of capital. This is called a...
Partnership
A voluntary association of two or more personas to act as co-owners of a business for profit.
Articles of incorporation
After a home state has been chosen, the incorporator submits ___________ ____ _______________ to the secretary of state. After being approved, these are often called the corporate charter.
Corporation
An artificial person created by law with most of the legal rights of a real person, including the right to start and operate a business, to buy or sell property, to borrow money, to sue or be sued, and to enter into binding contracts. This is called a...
IPO
An initial public offering is where a corporation sells stock to the general public for the first time. This is abbreviated as...
Domestic corporation in Michigan Foreign corporation in Indiana
Ford is a...
General partnership
In this type of partnership, a person assumes full or shared responsibility for operating a business.
Limited partnership
In this type of partnership, a person who invests money in a business but has no management responsibility or liability for losses beyond the amount he or she invested in the partnership.
Stockholder - Board of directors - Corporate officers - Employees
List the four step hierarchy of corporate structure.
Horizontal Vertical Conglomerate
Mergers generally fall into the following three categories:
Common stock
Stock owned by individuals or firms who may vote on corporate matters but whose claims on profits and assets are subordinate to the claims of others. This is called...
Preferred stock
Stock owned by individuals or firms who usually do not have voting rights but hose claims on dividends are paid before those of common-stock owners. This is called...
Corporate officers
The chairman of the board, president, executive vice presidents, corporate secretary, treasurer, and any other top executive appointed by the board of directors is one of the...
Stock
The shares of ownership of a corporation are called...
Board of directors
This group of people are the governing body of a corporation, and the members of which are elected by the stockholders.
Tender offer
This is where an offer to purchase the stock of a firm targeted for acquisition is set at a price just high enough to tempt stockholders to sell their shares:
General partnership Limited partnership
What are the two types of partnerships?
