Chapter 6

officers

A corporation are the top executives who are hired to manage the business.

prospectus

A formal summary of the chief features of the business and its stock offering.

proxy

a written authorization for someone to vote on behalf of the person signing the proxy

virtual corporation

network of companies that form alliances among themselves as needed to take advantage of fast-changing market conditions

close corporation (closely held corporation)

one that does not offer its shares of stock for public sale

capital stock (stock)

the general term applied to the shares of ownership of a corporation

cooperative

a business owned and operated by its user-members for the purpose of supplying themselves with goods and services

corporation

a business owned by a group of people and authorized by the state in which it is located to act as though it were a single person, separate from its owners

Limited Liability Company (LLC)

Special type of corporation allowed by states that is taxed as if it were a sole proprietorship or partnership. Subchapter S corporation

stockholders

The owners of a corporation; also called shareholders.

joint venture

an agreement among two or more businesses to work together to provide a good or service

nonprofit organization

an organization that functions much like a business but does not operate to make a profit nor do they pay taxes

quasi-public corporation

business that is important to society but lacks the profit potential to attract private investors and is often operated by local, state, or federal government

charter

certificate of incorporation, the official document through which a state grants the power to operate as a corporation

shares

equal portions of a corporation's stock

Open Corporation (publicly owned corporation)

one that offers its shares of stock for public sale

dividends

profits distributed to stockholders on a per-share basis

board of directors

the ruling body of a corporation, often called board or directors