| A | B |
|---|
| 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 no seperate 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 own and sell property, to borrow money, and to sue or be sued; owners of the corporation enjoy limited liability |
| S corporation | Corporations with no more than 75 shareholders that may be taxed as a partnership; also know as subchapter S corporation |
| limited liability companies (LLCs) | 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 that does not actively participate in the management of that other company |
| shareholders | Owners of a corporation |
| proxy | Document authorizing another person to vote on behalf of a shareholder in a corporation |
| chief executive officer (CEO) | Person appointed by a corporation's board of directors to carry out the board's policies and supervise the activites of the corporation |
| 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 |
| board of directors | Group of people, elected by the shareholders, who have the ulitmate authority in guiding the affairs of 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 |
| leveraged buyout (LBO) | Situation in which individuals or groups of investors purchase a company primarily with debt secured by the company's assets |
| hostile takeovers | Situations in which an outside party buys enough stock in a corporation to take control against the wishes of the board of directors and corporate officers |
