Chapter 6 Flashcards
(19 cards)
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
Corporation
An official document granted by a state giving power to run a corporation
Charter (certificate of incorporation)
Owners of a corporation
Stockholders (shareholders)
Equal parts of the division of ownership of a corporation
Shares
Profits distributed to stock holders on a per-share basis
Dividends
Ruling body of a corporation
Board of directors
Top executives who are hired to manage the business
Officers
General term applied to the shares of ownership of a corporation
Capital stock
Written authorization for someone to vote on behalf of the person signing it
Proxy
A corporation that does not offer its shares of stock for public sale
Close Corporation
Corporation that offers its shares of stock for public sale
Open corporation
Formal summary of the chief features of the business and its stock offering
Prospectus
2 or more businesses that agree to provide a good or service, sharing the costs of doing business and also the profits
Joint venture
Network of companies that form alliances among themselves to take advantage of fast-changing market conditions
Virtual corporation
Business owned and operated by its user - members for the purpose of supplying themselves with goods and services
Cooperative
Special type of corporation that is taxed as if it were a sole proprietorship/ partnership
Limited liability company (LLC)
Special type of corporation allowed by states that is taxed as if it were a sole proprietorship/partnership
Subchapter S Corporations
Organization that does not pay taxes and does not exist to make a profit
Nonprofit corporation
Business that is important but lacks the profit potential to attract private investors and is often operated by local, state or federal government
Quasi - public corporation
