A business
owned (and usually operated) by one person who is responsible
for all of the firm's debts.
A major
disadvantage to sole proprietorships and partnerships: business
owners are responsible for paying off all the debts of the
business.
A business
with two or more owners who share in the operation of the firm
and in financial responsibility for the firm debts.
A type of
partnership that allows for two types of partners: limited
partners and active partners.
Partners who
invest their money in a business without being liable for the
debts incurred by active partners.
Partners who
take an active role in running a business and bear the
responsibility for its survival and growth.
An arrangement
in which an organization sells shares of the business to
investors and pays all profits back to these investors.
A form of
business ownership in which a group of sole proprietorships or
partnerships agree to work together for their common benefit.
A business
considered by law to be a legal entity separate from its owners
and with many of the legal rights and privileges of a person; a
form of business organization in which owners' liability is
limited to their investment in the firm.
A corporation
whose stock is widely held and available for sale to the general
public.
A corporation
whose stock is held by only a few people and is not available
for sale to the general public.
One of the
major advantages of corporations investors liability is limited
to their personal investments in the company.
A small
business whose owners enjoy the limited liability benefits of
corporate ownership but the taxation advantages of a
partnership.
(LLC) A
company that has the same advantages as an S&-corporation
but with fewer rules and regulations.
The document
required by the state in which a corporation receives its
charter. The articles include such information as the
corporation's name, its purpose, how much stock it intends to
issue, and the corporation's address.
The document
in which the rules and regulations of a corporation are set out.
The bylaws detail how directors will be elected, how they will
serve, their basic responsibilities, and how new stock will be
issued.
A share of
ownership in a corporation.
One who owns
shares of stock in a corporation.
The business
profits distributed to shareholders, paid on a per share basis.
Stock that
guarantees its owners a fixed dividend and priority over assets,
but no voting rights in the corporation.
Stock that
guarantees its owners voting rights in a company but last claim
to a company's assets.
Authorization
granted by shareholders for someone else to vote their shares.
The governing
body of a corporation, charged with overseeing the day&-to&-day
operations of the business.
(CEO) The top
manager hired by the board of directors to run a corporation.
Members of a
corporation's board of directors who are employees of the
company and who have primary responsibility for the corporation.
Members of a
corporation's board of directors who are not employees of the
corporation in the normal course of business.
The union of
two corporations to form a new corporation.
The purchase
of one company by another.
A corporation
owned by another corporation
A corporation
that owns another, subsidiary, corporation
A corporation
that conducts operations and marketing activities on an
international level.
A
collaboration between two or more organization on an enterprise.
An arrangement
in which a corporation buys its own stock with loaned funds and
holds it in trust for its employees. Employees "earn"
the stock based on some condition such as seniority. Employees
control the stock voting rights immediately, even though they
may not take physical possession of the stock until specified
conditions are met.
An
organization that invests for itself and its clients, frequently
by buying large blocks of a corporations stock.
A major change
in goods production that began in England in the mid&-eighteenth
century and was characterized by a shift to the factory system,
mass production, and the specialization of labor.
A process in
which all the materials and workers required to produce items
are brought together in one place.
The
manufacture of a good of uniform quality in large numbers.
The breaking
down of complex operations into individual tasks to permit
concentration in performing each task.
The period
during the early twentieth century in which U.S. business
focused almost exclusively on improving productivity and
manufacturing methods
The period
during the 1930's in which U.S. business focused on developing
sales forces advertising, and keeping products readily
available.
The philosophy that all businesses start
with the customer: a business must identify and satisfy consumer
wants to be profitable.
