Types of Business Ownership Vocabulary

1. Types of Business Ownership Vocabulary • Business Law Obj. 5.01 Click Here to Start

2. Alien Corporation Dissolution Dividend Domestic Foreign Incorporators Liquidation Shareholder Termination Merger Nonprofit Partnership Private Promoter Public Share Click on a word below to reveal the definition. More Vocabulary

3. Alien • A corporation chartered in another nation doing business in the state. Back

4. Corporation • a legal entity that is treated as an artificial person by the law. with limited liability of owners. Back

5. Dissolution • change in the relationship of the owners that occurs when one owner stops being associated with the business. Back

6. Dividend • profit paid through common stock to the shareholders, based on the corporation’s performance. Back

7. Domestic • a corporation chartered in a particular state. Back

8. Foreign • a corporation that does business in one state but is chartered in another state. Back

9. Incorporators • signors of the Articles of Incorporation. Back

10. Liquidation • the ending of a corporation. Back

11. Merger • the process by which one corporation blends into another existing corporation. Back

12. Nonprofit • a corporation organized for a social, charitable, or educational purpose. Back

13. Partnership • two or more competent parties combine their money, labor and skills for the purpose of carrying on a lawful business. Back

14. Private • a corporation established for business or charitable reasons. Back

15. Promoter • person who carries out the incorporation process and is personally liable for contracts entered into before the corporation is formed. Back

16. Public • a corporation established for governmental purpose. Back

17. Share • certain amount of money paid for each single unit of ownership owned. Back

18. Shareholder • a person who owns one or more shares of stock. Back

19. Termination • ending of a partnership. Back

20. Common Stock Dormant Partner Fictitious Name General Partnership Joint Liability Joint Venture Perpetual Life Preferred Stock Secret Partner Silent Partner Sole Proprietorship Unlimited Liability Click on a word below to reveal the definition. More Vocabulary

21. Common Stock • basic form of corporate ownership payable to shareholders as dividends at par or no-par value. Back

22. Dormant Partner • is one who is neither known to the public as a partner or active in management. Back

23. Fictitious Name • proprietor uses any name but his/her own name (made-up). Back

24. General Partnership • one which all the partners assume full personal liability for debts of the firm. Back

25. Joint Liability • all the owners of the business must be sued together in the event of a lawsuit. Back

26. Joint Venture • partnership in which one or more persons or firms combine their resources to complete one complex project. Back

27. Perpetual Life • one major advantage of corporations, which means the corporation can continue indefinitely with new owners. Back

28. Preferred Stock • a type of stock that entitles its owner to a stated dividend. Back

29. Secret Partner • one who is not known to the public as a partner yet participates in management. Back

30. Silent Partner • one who may be known to the public as a partner but takes no active part in management. Back

31. Sole Proprietorship • a form of business that is owned and operated by one person. Back

32. Unlimited Liability • business owner is responsible for all losses experienced by the business. Back

33. Click on a word below to reveal the definition. • Articles of Incorporation • Articles of Partnership • Corporation by Estoppel • De Facto Corporation • Employer Identification Number • De Jure Corporation • Partnership by Estoppel • Partnership by Proof of Existence • Tenancy in Partnership • Uniform Partnership Act (UPA) More Vocabulary

34. Articles of Incorporation • application form from the secretary of state’s office filed for incorporating a business. Back

35. Articles of Partnership • a partnership agreement usually expressed (may be written or oral). Back

36. Corporation by Estoppel • courts will not allow denial of existence of a corporation when a situation of some party’s willingness to treat a person as a corporation occurs. Back

37. De Facto Corporation • does not exist in law but exists in fact. Back

38. De Jure Corporation • lawfully exists after all formalities have been completed. Back

39. Employer Identification Number • assigned by IRS for income tax purposes when employees are hired. Back

40. Partnership by Estoppel • occurs because someone does or says something that leads a third party to believe that a co-ownership exists. Back

41. Partnership by Proof of Existence • the way two people conduct their business together. Back

42. Tenancy in Partnership • aco-ownership of partnership property. Back

43. Uniform Partnership Act (UPA) • the law that governs most business associations of two or more persons. Back