| A | B |
|---|
| corporation | a legal entity, or being, owned by individual stockholders, each of whom has limited liability for the firm's debts |
| stock | a certificate of ownership in a corporation |
| closely held corporation | a type of corporation that issues stock to only a few people, who are often family members |
| publicly held corporation | a type of corporation that sells stock on the open market |
| bond | a formal contract issued by a corporation or other entity that includes a promise to repay borrowed money with interest at fixed intervals |
| certificate of incorporation | a license to form a corporation issued by a state government |
| dividend | the portion of corporate profits paid out to stockholders |
| limited liability corporation | a type of business with limited liability for the owners, with the advantage of not paying income tax |
| horizontal merger | the combination of two or more firms cometing in the same market with the same good or service |
| vertical merger | the combination of two or more firms involved in different stages of producing the same good or service |
| conglomerate | a business combination merging more than three businesses that produce unrelated products or services |
| multinational corporation | a large corporation that produces and sells its goods and services in more than one country |
