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Owned by one person
Sole Proprietorship
whose stock is sold to the general public
Public Corporation
The highest ranking officer
CEO
representatives of the shareholders
Board of Directors
In a(n) ________, one company simply buys a controlling interest in the voting stock of another company.
Aquisition
Partnership Agreement
Investors who purchase shares of stock in a corporation
Shareholders
Investors an easily convert their stock into cash by selling it in the open market
Liquidity
authorizes another person to vote on behalf of a shareholder in a corporation
Proxy
A structure that combines limited liability with the pass-through taxation benefits of a partnership
Limited Liability Corporation (LLC)
Define Double Taxation
the imposition of taxes on the same income, assets or financial transaction at two different points of time.
all the policies, procedures, relationships, and systems to oversee the successful and legal operation of the enterprise
Corporate Governance
an action taken by two companies to combine as a single entity
A ________ is a partnership in which each partner has unrestricted accountability only for his or her own actions and at least some degree of responsibility for the partnership as a whole.
Limited Liability Partnership (LLP)
owned by only a few individuals and is not made available for purchase by the public
Private Corporation
activities taken by shareholders (individually or in groups) to influence executive decision making in areas ranging from strategic planning to social responsibility
Shareholder Activism
A(n) ________ is allowed to raise money by selling units of ownership to the general public in the same way corporations sell shares of stock to the public.
Master Limited Partnership (MLP)
What is the level of authority and liability in a general partnership?
Joint Authority, Joint Liability
acquisition of another company against the wishes of management
Hostile Takeover
are non-permanent, long-term partnerships between companies to jointly develop, produce, or sell products
Strategic Alliance
Name the the advantages of operating as a sole proprietorship
Simplicity, Single layer of taxation, Privacy, Flexibility and control, Fewer limitations on personal income, Personal satisfaction
A(n) ________ has most of the attributes of a regular corporation but adds the legal requirement that the company must also pursue a stated non-financial goal.
Benefit Corporation
is acquisition of a company’s publicly traded stock, using borrowed funds with the intent of using some of the acquired assets to pay back the loans used to acquire the company
Leveraged Buyout (LBO)
Name the 6 Advantages of a Partnership
Simplicity, Single layer of taxation, More resources, Cost Sharing, Broader skill and experience base, Longevity
Name the 4 advantages of a Corporation
Ability to raise capital, Liquidity, Longevity, Limited liability