chapter 4 Flashcards
Sole Proprietorship
a business that is owned (and usually operated) by one person
Partnership
a voluntary association of two or more persons tp act as co-workers of a business for profit
Unlimited liability
a legal concept that holds a business owner personally responsible for all the debts of the business
Limited partners
a person who invest money in the business but has no management responsibility or responsibility or liability for losses beyond the amount he or she invested in the partnership
Articles of partnership
an agreement listing explaining the terms of the partnership
General partner
a person who assumes full or shared responsibility for for operating a business
Domestic corporation
a corporation in the state in which it is incorporated
Corporation
an artificial person created by law with most of the legal rights of real person including the right to start and operate a business, to buy or sell property, to borrow money, to sue or to be sued, and to enter into binding contracts
Foreign corporation
a corporation in any state in which it does business except the oe in which it is incorporated
Board of directors
the top governing body of a corporation, the members of which are elected by the stockholders (owners)
Alien corporation
A corporation chartered by a foreign government and concluding business in the United States
Limited liability
a feature of corporate ownership that limite’s each owner’s financial liability to the amount of money that he or she has paid for the corporation’s stock
Corporate officers
the chairman of the board, president, executive vice president, corporate secretary, treasurer, and any other top executive appointed by the board of directors
S corporation
a corporation that is taxed as though it were a partnership
Limited-liability corporation (LLC)
a form of business ownership that combines the benefits of a corporation and a partnership while avoiding some restriction and disadvantages of those forms of ownership
