Ch 29 Flashcards
1
Q
legal entity formed in compliance with statutory requirements that is distinct from its shareholder-owners
A
corporation
2
Q
a distribution of corporate profits to the corporation’s shareholders in proportion to the number of shares held
A
dividend
3
Q
the portion of a corporation’s profits that has not been paid out as dividends to shareholders
A
retained earnings
4
Q
a corporation whose shareholders are limited to a small group of persons, often only family members
A
close corporation
5
Q
form of a close corporation- most corporate attributes, including limited liability but double taxation
A
s corporation
6
Q
action of a court to disregard the corporate entity and hold the shareholders personally liable for corporate debts and obligations
A
piercing the corporate veil
