The Legal Environment of Business Chapter 19

publicly held corporation

A corporation for which shares of stock have been sold to the public. (examples: New York Stock Exchange, NASDAQ)

public corporation

A corporation owned by a federal, state, or municipal government--not to be confused with a publicly held corporation. (examples: U.S. Postal Service, Amtrak)

S corporation

A corporation that is taxed the same as a partnership, but has the privileges of a limited liability.(It can avoid income taxes at the corporate level while retaining many of the advantages of a corporation, particularly limited liability).

alien corporation

A designation in the United States for a corporation formed in another country but doing business in the United States.

bylaws

A set of governing rules adopted by a corporation or other association.

foreign corporation

In a given state, a corporation that does business in the state without being incorporated therein. (A corporation formed in one state but doing business in another is referred to in the second state as a foreign corporation.)

domestic corporation

In a given state, a corporation that does business in, and is organized under the laws of, that state.

articles of incorporation

The document filed with the appropriate government agency, usually the secretary of state, when a business is incorporated. State statues usually prescribe what kind of information must be contained in the articles of incorporation.

retained earnings

The portion of a corporation's profits that has not been paid out as dividends to shareholders.

holding company

a company created to buy and possess the shares of other companies, which it then controls.

close corporation

close corporation is a corporation whose shareholders and directors are entitled to operate much like a partnership (without strict liablilties etc.)