Ch. 5 Options for Organizing Businesses Flashcards
Acquisition
the purchase of one company by another, usually by buying its shares
Certificate of Incorporation
a legal document that the provincial or federal government issues to a company based on information the company provides in the articles of incorporation
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
Corporation
a legal entity, whose assets and liabilities are separate from those of its owners
Crown Corporations
corporations owned and operated by government (federal or provincial)
General Partnership
a partnership that involves a complete sharing in both the management and the liabilities of the business
Initial Public Offering
selling a corporation’s shares on public markets for the first time
Leveraged Buyout
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
Limited Liability Partnership
a partnership agreement where partners are not responsible for losses created by other partners
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
Partnership
a form of business organization defined as an association of two or more persons who carry on as co-owners of a business for profit
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 shares anyone may buy, sell, or trade
Sole Proprietorship
businesses owned and operated by one individual; the most common form of business organization in Canada
