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| Business owned by a single individual. |
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| Legal condition under which any damages or debts attributable to the business can also be attached to the owner because the two have no separate legal existence. |
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| Unincorporated business owned and operated by two or more people under a voluntary legal association. |
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| Partnership in which all partners have the right to participate as co-owners and are individually liable for the business's debt. |
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| Partnership composed of one or more general partners and one or more partners whose liability is usually limited to the amount of their capital investment. |
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| People who run the business in a Limited Partnership. |
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| The owners that don't work in a Limited Partnership. |
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| Legally chartered enterprise having most of the legal rights of a person, including the right to conduct business, to own and sell property, to borrow money, and to sue or be sued. |
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| Document that proves stock ownership. |
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| Shares whose owners have voting rights and have the last claim on distributed profits and assets. |
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| Distributions of corporate assets to shareholders in the form of cash or other assets. |
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| Shares that give their owners first claim on a company's dividends and assets after paying all debts. |
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| Company owned by private individuals or companies |
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| Corporation that actively sells stock on the open market. |
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| The level of ease with which an asset can be converted to cash. |
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Definition
| Corporation with no more than 75 shareholders that may be taxed as a partnership; also known as a sub chapter S corporation |
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| Limited Liability Companies (LLC's) |
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Definition
| Organizations that combine the benefits of S corporations and limited partnerships with out the drawbacks of either. |
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Definition
| Corporations whose stock is owned entirely or almost entirely by another corporation. |
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| Company that owns most, if not all, of another company's stock and that takes an active part in managing that other company. |
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| In a broad sense, describes the policies, procedures, relationships, and systems in place to oversee the successful and legal operation of the enterprise; in a narrow sense, describes the responsibilities and performance of the board of directors. |
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| Chief Executive Officer (CEO) |
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Definition
| Person appointed by a corporation's board of directors to carry out the board's policies and supervise the activities of the corporation. |
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Definition
| Document authorizing another person to vote on behalf of a shareholder in a corporation. |
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Definition
| Group of people, elected by the shareholders, who have the ultimate authority in guiding the affairs of a corporation. |
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Definition
| Combination of two companies in which one company purchases the other and assumes control of its property and liabilities. |
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| Combination of two or more companies in which the old companies cease to exist and a new enterprise is created. |
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| Form of business combination in which one company buys another company's voting stock. |
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| Situations in which and outside party buys enough stock in a corporation to take control against the wishes of the board of directors and corporate officers. |
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| Situation in which individuals or groups of investors purchase companies primarily with debt secured by the company's assets. |
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Term
| Limited Liability Partnership (LLP) |
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Definition
| All partners in the business are limited partners and have only limited liability for the debts and obligations of the partnership. |
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Definition
| A written document that states all the terms of operating the partnership by spelling out the partners' rights and responsibilities. |
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| Dividends paid in cash or stock. |
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| Cumulative Preferred Stock |
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Definition
| Any unpaid dividends must be paid before dividends are paid to common shareholders. |
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| Closed Corporations/ Closely Held Companies |
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| Professional Corporations |
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Definition
| Doctors, Lawyers and some other professionals other join forces in a special type of private corporation. |
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| Publicly Held/Publicly Traded |
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Definition
| Held by and available for sale to the general public. |
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Definition
| A special type of parent company that owns other companies for investment reasons and usually exercises little operating control over those subsidiaries. |
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| Operates in the United States but is incorporated in another country. |
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| Foreign Corporation/Out of State Corporation |
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| Incorporated in one state but does business in several other states. |
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| Business only in the state where it is chartered. |
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| Ex: Pension Funds, Insurance Companies, Mutual Funds, and College Endowment Funds. |
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| Occurs when a company purchases a complementary company at a different level in the "value chain." |
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| Involves two Similar Companies at the same level. |
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| Two firms offer dissimilar products or services, ofter in widely different industries. |
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| Combines firms that offer similar products and services in different geographic markets. |
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| Round out a product line. |
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| Economies of Scale/Efficiencies/Synergies |
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Definition
| Benefits of working together will be greater than if each company continued to operate independently. |
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Definition
| The way people in a given organization approach the day-today business of running a company. |
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| Two joining companies have different beliefs about what is really important, how to make decisions, how to supervise people, how to communicate, etc. |
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| The stronger players that frequently acquire smaller, weaker players, reducing the number of suppliers left in the market. |
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| A Long term partnership between companies to jointly develop, produce, of sell products. |
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| A separate legal entity established by the strategic partners. |
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| Offers to buy a certain number of shares of stock in a corporation at a specific price. |
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Definition
| The raider launches a public relations battle for shareholder votes, hoping to enlist enough votes to oust the board and management. |
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