Module 4: Agency Flashcards
power of attorney
an agency agreement in writing and under seal; a special type of express agency agreement
insurance broker
an independent business that deals with several insurance companies and advises clients on the appropriate insurance coverage
limited partnership
a partnership in which the liability of some partners is limited to their capital contribution
limited liability partnership
a partnership in which the partners have unlimited liability for their own malpractice but limited liability for other partners’ malpractice
franchise
an agreement whereby an owner of a trademark or trade name permits another to sell a product or service under that trademark or name
joint venture
a grouping of two or more businesses to undertake a particular project
strategic alliance
an arrangement whereby two or more businesses agree to cooperate for some purpose
sales agency
an agreement in which a manufacturer or distributor allows another to sell products on its behalf
product licensing
an arrangement whereby the owner of a trademark or other proprietary right grants to another the right to manufacture or distribute products associated w the trademark or other proprietary right
widely held corporation
a corporation whose shares are normally traded on a stock exchange
securities legislation
laws designed to regulate transactions involving shares and bonds of a corporation
closely held corporation
a corporation that does not sell its shares to the public (aka private corporation)
NUANS report
a document that shows the result of a search for business names
shelf company
a company that does not engage in active business
bond
a document evidencing a debt owed by thecorporation, often used to refer to a secured debt
debenture
a document evidencing a debt owed by the corporation, often used to refer to an unsecured debt
securities
shares and bonds issued by a corporation
conversion right
the right to convert one type of security into another type
prospectus
the document a corporation must publish when offering securities to the public
Insider trading
transactions in securities of a corporation by or on behalf of an insider on the basis of relevant material information concerning the corporation that is not known to the general public; carries a penalty of up to 10 years in prison
Insider
a person whose relationship with the issuer of securities is such that he is likely to have access to relevant material information concerning the issuer that is not known to the public
tippee
a person who acquires material information about an issuer of securities from an insider ; punishable by up to 5 years in prison
