Business Chapter 4
Partnership
A form of business ownership in which the business is owned by two or more persons, defined by the Uniform Partnership Act as "an association of two or more persons who carry on as co-owners of a business for profit"
preferred stock
A special type of stock whose owners, though not generally having a say in running the company, have a claim to profits before other stockholders do.
Limited Partnership
a business organization that has at least one general partner, who assumes unlimited liability, and at least one limited partner, whose liability is limited to his or her investment in the business
private corporation
a corporation owned by just one or a few people who are closely involved in managing the business
public corporation
a corporation whose stock anyone may buy, sell, or trade
board of directors
a group of individuals, elected by the stockholders to oversee the general operation of the corporation, who set the corporation's long-range objectives
corporate charter
a legal document that the state issues to a company based on information the company provides in the articles of incorporation
Corporation
a legal entity, created by the state, whose assets and liabilities are separate from its owners
joint venture
a partnership established for a specific project or for a limited time
General Partnership
a partnership that involves a complete sharing in both the management and the liability of the business
leveraged buyout (LBO)
a purchase in which a group of investors borrows money from banks and other institutions to acquire a company (or a division of one), using the assets of the purchased company to guarantee repayment of the loan
cooperative (co-op)
an organization composed of individuals or small businesses that have banded together to reap the benefits of belonging to a larger organization
sole proprietorships
businesses owned and operated by one individual; the most common form of business organization in the United States
S corporation
corporation taxed as though it were a partnership with restrictions on shareholders
quasi-public corporation
corporations owned and operated by the federal, state, or local government
nonprofit corporation
corporations that focus on providing a service rather than earning a profit but are not owned by a government entity
limited liability company (LLC)
form of ownership that provides limited liability and taxation like a partnership but places fewer restrictions on members
incorporators
individuals creating the corporation are known as (most states require min of 3)
articles of partnership
legal documents that set forth the basic agreement between partners
Dividends
profits of a corporation that are distributed in the form of cash payments to stockholders
initial public offering (IPO)
selling a corporations stock on public markets for the first time
Stock
shares of a corporation that may be bought or sold
common stock
stock whose owners have voting rights in the corporation, yet do not receive preferential treatment regarding dividends
merger
the combination of two companies (usually corporations) to form a new company
acquisition
the purchase of a company by another company, usually by buying its stock
