Organizing #1
The purchase of one company by another, usually by buying its stock.
What is acquisition?
Stock whose owners have voting rights in the corporation, yet do not receive preferential treatment regarding dividends.
What is common stock?
A partnership established for a specific project or for a limited time.
What is a joint venture?
A corporation owned by just one or a few people who are closely involved in managing the business.
What is a private corporation?
A corporation whose stock anyone may buy, sell, or trade.
What is a public corporation?
Legal documents that set forth the basic agreement between partners.
What are articles of partnership?
A legal entity, created by the state, whose assets and liabilities are separate from its owners.
What is a corporation?
The combination of two companies (usually corporations) to form a new company.
What is a merger?
Businesses owned and operated by one individual; the most common form of business organization in the United States.
What are sole proprietorships?
A form of business organization defined by the Uniform Partnership Act as “an association of two or more persons who carry on as co-owners of a business for profit.”
What is a partnership?
A group of individuals, elected by stockholders to oversee the general operation of the corporation, who set the corporation’s long-range objectives.
What is a board of directors?
Profits of a corporation that are distributed in the form of cash payments to stockholders.
What are dividends?
Corporations that focus on providing a service rather than earning a profit but are not owned by a government entity.
What are nonprofit corporations?
Corporation taxed as though it were a partnership with restrictions on shareholders.
What is an S corporation?
Unlimited liability, responsibilities and conflicts, life of the partnership, distribution of profits, limited sources of funds.
What are disadvantages of partnerships?
Double taxation, forming a corporation, disclosure of information, employee-owner separation.
What are disadvantages of corporations?
Limited liability, ease of transfer of ownership, perpetual life, external sources of funds, expansion potential.
What are advantages of corporations?
Form of ownership that provides limited liability and taxation like a partnership but places fewer restrictions on members.
What is a limited liability company?
Corporations owned and operated by federal, state, or local government.
What are quasi-public corporations?
Ease of organization; availability of capital and credit; combined knowledge and skills; decision-making; regulatory controls.
What are advantages of partnerships?
A legal document that the state issues to a company based on information the company provides in the articles of incorporation.
What is a corporate charter?
Secrecy, Distribution and use of profits, Flexibility and control of the business, Government regulation, Taxation, Closing the business.
What are advantages of sole proprietorships?
A special type of stock whose owners, though not generally having a say in running the company, have a claim to profits before other stockholders do.
What is preferred stock?
A business organization that has at least one general partner, who assumes unlimited liability, and at least one limited partner, whose liability is limited to his or her investment in the business.
What is a limited partnership?
1) unlimited liability, 2) limited sources of funds, 3)limited skills, 4)lack of continuity, 5)lack of qualified employees, 6)taxation?
What are disadvantages of sole proprietorships?