Term
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Definition
| One method used courts to pierce the corporate veil when a shareholder fails to treat the corporate organization as a separate legal entity. |
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Term
| Articles of Incorporation |
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Definition
| The legal document that forms the application for the state charter of incorporation. |
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Definition
| The document used to create a limited liability company. |
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Term
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Definition
| Another name for a formally drafted partnership agreement. |
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Term
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Definition
| A state law that requires partners to make a public filing of their identities if their partnership operates under a name that does not reveal the partners identity. |
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Term
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Definition
| A contract, usually among partners, but perhaps among shareholders, wherein one party agrees to buy the ownership interest held by another party or the first party agrees to sell such an interest to the other party. These contractual provisions help provide for a transition of owners without harming the business of the organization. |
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Term
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Definition
| The legal document issued by a state when creating a new corporation. |
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Term
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Definition
| An organization that is owned by only a few people. |
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Term
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Definition
| An artificial, but legal, person created by state law. As a business organization the separation of owners and managers gives it a high level of flexibility. |
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Term
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Definition
| A lawsuit filed by one or more shareholders of a corporation against the organizations management. This suit is brought to benefit the corporation directly and its shareholders indirectly. |
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Term
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Definition
| Those individuals who are elected by the shareholders to decide the goals and objectives for the corporate organization. |
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Term
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Definition
| The cancellation of an agreement, thereby rescinding its binding force. |
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Term
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Definition
| A business organization created by the issuance of a state charter that operates in the state that issued the charter. |
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Term
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Definition
| A disadvantage of a corporate form of organization in that the corporation must pay a tax on the money earned and the shareholder pays a second tax on the dividends distributed. |
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Term
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Definition
| A business organization, created by the issuance of a state charter, that operates in states other than the one issuing the charter. |
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Term
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Definition
| The owner of a limited partnership that enjoys the control of the partnership's operation. This type of partner is personally liable for the debts of the limited partnership. |
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Term
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Definition
| Those individuals who are responsible for bringing a corporation into being. |
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Term
| Jointly and Severally Liable |
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Definition
| The legal principle that makes two or more people, usually partners, liable for an entire debt as individuals or in any proportional combination. |
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Term
| Limited Liability Company (LLC) |
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Definition
| A type of business organization that has characteristics of both a partnership and a corporation. The owners are called members, and their personal liability is limited to their capital contribution. It is an organization, not a taxable entity. |
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Term
| Limited Liability Partnership |
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Definition
| A hybrid business partnership. |
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Term
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Definition
| Those owners of a limited partnership who forgo control of the organization's operation in return for their liability being limited to the amount of their investment. |
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Term
| Limited Personal Liability (Limited Liability) |
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Definition
| This term is used to describe the exposure of business owners to pay the debts of their businesses when such exposure does not exceed the owner's investment in the business. |
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Term
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Definition
| A person designated and charged with day-to-day operations of a LLC. |
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Term
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Definition
| The individuals or business entities that belong in an LLC. |
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Term
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Definition
| Those individuals appointed by directors of a corporation to conduct the daily operations of the corporate organization. |
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Term
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Definition
| The parties responsible for bringing an LLC into existence. These parties correspond to the functions of incorporators with respect to corporations. |
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Term
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Definition
| A business organization involving two or more persons agreeing to conduct a commercial venture while sharing its profits and losses. |
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Term
| Piercing the Corporate Veil |
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Definition
| The legal doctrine used by courts to disregard the existence of a corporation, thereby holding the shareholders personally liable for the organizations debt. |
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Term
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Definition
| The legal document whereby shareholders appoints an agent to vote the stock at a corporation's shareholders' meeting. |
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Term
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Definition
| A business organization that is formed as a corporation but, a shareholders' election, is treated a a partnership for taxation purposes. |
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Term
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Definition
| A business organization that is formed as a corporation but, by a shareholders' election, is treated as a partnership for taxation purposes. |
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Term
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Definition
| A policy of companies that allow the compensation of executives to be reviewed by shareholders. |
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Term
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Definition
| The owners of a corporation. Typically these owners vote on major decisions impacting their corporations, most commonly the election of a board of directors. |
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Term
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Definition
| The simplest form of business organization, created and controlled by one owner. |
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