Term
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Definition
| Partner who assumes unlimited liability for the debts of the partnership; responsible for partnership management |
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Term
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Definition
| Partnership in which all partners have mutual agency and unlimited liability for partnership debts |
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Term
| Limited Liability Partnership |
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Definition
| Partnership in which a partner is not personally liable for malpractice or negligence unless that partner is responsible for providing the service that resulted in the claim |
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Term
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Definition
| Partners who have no personal liability for partnership debts beyond the amounts they invested in the partnership |
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Term
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Definition
| Partnership that has two classes of partners, limited partners and general partners |
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Term
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Definition
| Legal relationship among partners whereby each partner is an agent of the partnership and is able to bind the partnership to contracts within the scope of the partnership's business |
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Term
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Definition
| Unincorporated association of two or more persons to pursue a business for profit as co-owners |
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Term
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Definition
| Agreement among partners that sets terms under which the affairs of the partnership are conducted; also called articles of partnership |
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Term
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Definition
| Dissolution of a partnership by (1) selling non cash assets and allocating any gain or loss according to partners' income-and-loss ratio, (2) paying liabilities, and (3) distributing any remaining cash according to partners' capital balance |
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Term
| Statement of Partners' Equity |
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Definition
| Financial statement that shows total captial balances at the beginning of the period, any additonal investment by partners, the income or loss of the period, the partners' withdrawals, and the partners' ending capital balances; also called statement of partners' capital |
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Term
| Unlimited Partner Liability |
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Definition
| The partners are jointly liable for all debts and other liabilities of the business. If the business is sued, all the business and personal assets of the partners are at risk. |
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Term
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Definition
| Total amount of stock that a corporation's charter authorizes it to issue |
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Term
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Definition
| Net income minus any preferred dividends and then divided by weighted-average common shares outstanding |
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Term
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Definition
| Corporation's basic ownership share; also generically called capital stock |
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Term
| Convertible Preferred Stock |
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Definition
| Preferred stock with an option to exchange it for common stock at a specified rate |
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Term
| Cumulative Preferred Stock |
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Definition
| Preferred stock on which undeclared dividends accumulate until paid; common stockholders cannot receive dividends until cumulative dividends are paid |
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Term
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Definition
| Date the directors vote to pay a dividend |
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Term
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Definition
| Date the corporation makes the dividend payment |
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Term
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Definition
| Date directors specify for identifying stockholders to receive dividends |
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Term
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Definition
| Unpaid dividend on cumulative preferred stock; must be paid before any reular dividends on preferred stock and before any dividends on common stock |
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Term
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Definition
| Ratio of the annual amount of cash dividends distributed to common shareholders relative to the common stock's market value |
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Term
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Definition
| Eearning a higher return on equity by paying dividends on preferred stock or interest on debt at a rate lower than the return earned with the assets from issuing preferred stock or debt; also called trading on the equity |
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Term
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Definition
| Stock dividend that is more than 25% of the previously outstanding shares |
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Term
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Definition
| Price at which stock is bought or sold |
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Term
| Non-cumulative preferred stock |
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Definition
| Preferred stock on which the right to receive dividends is lost for any period when dividends are not declared |
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Term
| Non-participating Preferred stock |
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Definition
| Preferred stock on which dividends are limited to a maximum amount each year |
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Term
| Participating Preferred Stock |
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Definition
| Preferred stock that shares with common stockholders any dividends paid in excess of the percent stated on preferred stock |
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Term
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Definition
| Stockholders' right to maintain their proportionate interest in a corporation with any additional shares issued |
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Term
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Definition
| Ratio of a company's current market value per share to its earning per share; also called price-to-earnings |
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Term
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Definition
| Legal document diving a stockholder's agent the power to exercise the stockholder's voting rights |
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Term
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Definition
| Cumulative income less cumulative losses and dividends |
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Term
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Definition
| Occurs when a corporation calls in its stock and replaces each share with less than one new share; increases both market value per share and any par or stated value per share |
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Term
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Definition
| Stock dividend that is 25% or less of a corporation's previously outstanding shares |
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Term
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Definition
| Corporation's distribution of its own stock to its stockholders without the receipt of any payment |
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Term
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Definition
| Occurs when a corporation calls in its stock and replaces each share with more than one new share; decreases both the market value par share and any par or stated value per share |
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Term
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Definition
| Corporation's own stock that it reacquired and still holds |
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