| A | B |
|---|
| shareholders | owners of a corporation |
| stock certificate | document that proves stock ownership |
| common stock | shares whose owners have voting rights and have the last claim on distributed profits and assets |
| dividends | distributions of corporate assets to shareholders in the form of cash or other assets |
| preferred stock | shares that give their owners first claim on a company's dividends and assets after paying all debts |
| private corporation | company owned by private individuals or companies |
| public corporation | corporation that actively sells stock on the open market |
| liquidity | the level of ease with which an asset can be converted to cash |
| S corporation | corporation with no more that 75 shareholders that may be taxed as a partnership; also known as a subchapter S corporation |
| limited liability | organizations that combine the benefits of S corporations and limited partnerships without the drawbacks of either |
| subsidiary corporations | corporations whose stock is owned entirely or almost entirely by another corporation |
| parent company | company that owns most, if not all, of another company's stock and that takes an active part in managing that other company |
| holding company | company that owns most, if not all, of another company's stock but does not actively participate in the management of that other company |
| chief executive officer | person appointed by a corporation's board of directors to carry out the board's policies and supervise the activities of the corporation |
| proxy | document authorizing another person to vote on behalf of a shareholder in a corporation |
| merger | combination of two companies in which one company purchases the other and assumes control of its property and liabilities |
| consolidation | combination of two or more companies in which the old companies cease to exist and a new enterprise is created |
| acquisition | form of business combination in which one company buys another company's voting stock |
| hostile takeovers | situations in which an outside party buys enough stock in a corporation t take control against the wishes of the board of directors and corporate officers |
| leverage buyouts | situation in which individuals or groups of investors purchas companies primarily with debt secured by the company's assets |
| sole proprietorship | business owned by a single individual |
| unlimited liability | legal condition under which any damages or debts attributable to the business can also be attached to the owner because the two have not separate legal existence |
| partnership | unincorporated business owned and operated by two or more persons under a voluntary legal association |
| general partnership | partnership in which all partners have the right to participate as co-owners and are individually liable for the business's debts |
| limited partnership | partnership composed of one or more general partners and one or more partners whose liability is usually limited to the amount of their capital investment |
| corporation | legally chartered enterprise having most of the legal rights of a person, including the right to conduct business, to won and sell property, to borrow money, and to sue or be sued; owners of the corporation enjoy limited liability |
