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