Business Forms
This business form is owned by one person and is the most common startup structure
What is a sole proprietorship?
A partnership requires at least this many people
What is two?
This group has ultimate authority in a corporation
What is the Board of Directors?
This occurs when one company survives after acquiring another
What is a merger?
This act governs initial stock sales
What is the Securities Act of 1933?
This hybrid entity provides limited liability and pass-through taxation
What is an LLC?
Partners are considered this in relation to the partnership
What is agents?
These individuals are elected by shareholders
What are directors?
This creates an entirely new company
What is a consolidation?
This agency regulates securities markets
What is the SEC?
Owners of this entity are called shareholders
What is a corporation?
Sharing these creates a presumption of partnership
What are profits?
This is the minimum number needed to conduct business
What is a quorum?
This defense makes takeovers expensive by issuing rights
What is a poison pill?
This document describes risks and financials of a security
What is a prospectus?
This business method allows use of another company’s brand and system
What is a franchise?
This type of taxation applies to partnerships
What is pass-through taxation?
These are the two primary fiduciary duties
What are care and loyalty?
This involves paying a premium to repurchase shares
What is greenmail?
This test determines if something is an investment contract
What is the Howey Test?
This legal concept allows courts to hold owners personally liable in certain cases
What is piercing the corporate veil?
This alone does NOT create a partnership
What is joint ownership of property?
This rule protects directors for good-faith decisions
What is the business judgment rule?
This is a friendly company that rescues a takeover target
What is a white knight?
This system is used for electronic SEC filings
What is EDGAR?