Forms of Ownership
•Is a business owned by one person.
Sole Proprietorship
•Is a company that is owned by two or more people but is not a corporation.
Partnership
Is sold to anyone who has the means to buy it – Individuals, investment companies, not-for-profit organizations, and other companies.
Public Corporation
A document that authorities another person to vote on behalf of a shareholder in a corporation
Proxy
The top of executives who run a corporation
Corporate Officers
All partners have joint authority to make decisions for the firm and joint liability for the firms financial obligations
General Partnerships
A long-term partnership between companies to jointly develop, produce, or sell products
Strategic Alliance
•A type of corporation that combines the capital-raising options and limited liability of a corporation with the federal taxation advantages of a partnership
S Corporation
An action taken by two companies to combine as a single entity
Merger
Are investors that own corporations by purchasing shares of stock.
Shareholders
•A partnership in which one or more persons act as general partners who run the business and have the same unlimited liability as sole proprietors.
Limited partnership
A partnership that is allowed to raise money by selling units of ownership to the general public.
Master Limited Partnership
A structure that combines limited liability with the pass-through taxation benefits of a partnership; the number of shareholders is not restricted, nor is members participation in management.
Limited Liability Company (LLC)
A legal condition in which the maximum amount each owner is liable for is equal to whatever amount each invested in the business.
Limited Liability
A group of professionals elected by shareholders as their representatives, with responsibility for the overall direction of the company and the selection of top executives
Board of Directors
Are a legal entity, distinct from any individual persons, that has the power to own property and conduct business.
Corporations
A partnership in which each partner has unlimited liability only for his or her own actions and at least some degree of limited liability for the partnership as a whole.
Limited Liability Partnership
A profit-seeking corporation whose charter specifies a social or environmental goal that the company must pursue in addition to profit
Benefit Corporation
Activities taken by shareholders to influence executive decision making in areas ranging from strategic planning to social responsibility
Shareholder Activism
A separate legal entity established by two or more companies to pursue shared business objectives
Joint Venture
What are the four forms of business ownership?
Sole Proprietorship
General Partnership
Limited Partnership
Corporation
What are the four types of partnerships
•General Partnerships
•Limited Partnerships
•Master Limited Partnership
•Limited Liability Partnership
What are the three types of corporations?
•S Corporation
•Limited Liability Company (LLC)
•Benefit Corporation
Acquisition of a company’s publicly traded stock, using funds that are primarily borrowed, usually with the intent of using some of the acquired assets to pay back the loans used to acquire the company.
Leveraged Buyout
In a broad sense, describes all the policies, procedures, relationships, and systems in place to oversee the successful and legal operation of the enterprise, in a narrow sense, refers to the responsibilities and performance of the board of directors specifically.
Corporate Governance