| A | B |
|---|
| Proprietorship | business owned by one individual |
| Partnership | business owned by two or more individuals |
| Corporation | business or group of people legally allowed to act as a single unit |
| C Corporation | most common type of corporation; has shareholders which elect a board of directors which oversee the company’s activities |
| Board of Directors | governing body of elected members which oversee the company’s activities |
| Double Taxation | profits are taxed when earning and taxed again when distributed as shareholders’ dividends |
| S Corporation | formerly called a “sub section S corporation”; records profits and losses on shareholders’ personal tax returns |
| Corporate Tax | levy placed on the profit of a firm |
| Target Profit | profit goal set by the company which estimates the business performance needed to make a profit during a certain period of time |
| Data Mining | process of examining a large collection of data and identifying potentially useful information |
| OLAP | online analytical processing; method of analyzing data used to query databases using specific questions which can be used to investigate business assumptions |
| Going Public | process of selling shares of a privately owned company to new public investors for the first time; also known as “IPO” or initial public offering |
| Bonds | debt investments where an investor loans money to an entity such as a corporation which borrows the funds for a defined period of time at a variable or fixed interest rate |
| Shares | units of ownership interest in a corporation |
| Common Stock | security which represents ownership of a company |
| Par Value | lowest price for which a share of stock can be sold |
| Preferred Stock | class of ownership in a corporation which has a higher claim on its assets and earnings than common stock |
| Convertible Preferred Stock | shares which can be issued by a corporation at a stated price which can be converted to common stock in a predetermined ratio |
| Conversion Premium Percentage | difference between the preferred share’s parity value and its conversion value |
| Dividends | distribution of a portion of a company’s earnings |
| Cash Dividends | funds paid to the stockholder |
| Stock Dividends | paid to shareholders in the form of shares rather than cash |
| Property Dividend | payment which can include shares of a subsidiary company or physical assets; alternative to cash and can include inventory of the company |
| Scrip Dividend | provide investors with a chance to purchase new shares made available by a company instead of receiving a cash payout |
| Liquidating Dividend | type of payment made to a shareholder during a partial or full liquidation |
| Accounting Period | time frame when certain accounting transactions occur |
| Journal | form used to record transactions in a chronological order |
| Ledger | collection of all accounts in a business |
| Trial Balance | list of all accounts and their balances at a certain point to verify all the debits equal the credits |
| Income Statement | shows how profitable a company is during a certain accounting period |
| Statement of Retained Earnings | statement outlining the changes in retained earnings for a certain period |
| Retained Earnings | earnings maintained by the company for financial growth |
| Balance Sheet | external document showing a company’s financial position at a certain time |
| Internal Accounting Controls | company procedures which ensure transactions are recorded properly |
